Chinese automaker Changan Automobile disclosed plans to construct a new electric vehicle production plant in Thailand, as published by the Thailand Board of Investment.
The planned facility marks the brand’s first production plant beyond its home country, a critical part of its expansion strategy.
Investment
Changan plans to invest 9.8 billion Thai Baht or around P15,933,062,107, as the Thai Board of Investments confirmed on Thursday.
Apart from that, Changan Chairman Zhu Huarong also stated at the 2023 Shanghai Auto Show that the automaker would invest four billion Chinese Yuan in the local market in the coming years.
“Changan decision to invest in Thailand is a significant milestone in promoting the country as the world’s major EV production base.
It also demonstrates the company’s confidence in Thailand’s infrastructure, market potential, proactive policy to promote a complete EV ecosystem, and comprehensive supply chain that is ready to support EV production.”
Thailand BOI Secretary General Narit Therdsteerasukdi
About the production plant
Changan expects to start production at the Thailand plant in 2024 with an annual capacity of 100,000 units in the first phase. It will gradually increase to 200,000 units per year in the second phase.
AutoDeal reported that the Chinese automaker would erect the plant at the Eastern Economic Corridor, an established special economic zone covering three provinces along the Gulf of Thailand.
Interestingly, Changan will use this plant as its central electric and hybrid vehicle production hub for right-hand drive markets.
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Apart from EV production, Changan will also manufacture EV batteries for exports in the following markets: Southeast Asia, Australia, New Zealand, South Africa, and the United Kingdom.
“The BOI will continue to work with various agencies to attract other EV manufacturers from Asia, Europe, and America to invest in Thailand.
We are also actively promoting the build up of an electric charging network and other necessary elements to strengthen the EV ecosystem and related industries in Thailand.”
Thailand BOI Secretary General Narit Therdsteerasukdi
