Chinese automaker Changan Automobile reportedly partnered with the Thailand Board of Investment (BOI) to accelerate the development of its proposed factory in Thailand, CnEVPost reports.
Agreement details
Changan signed the deal with Thailand’s BOI during the third Belt and Road Forum for International Cooperation event in Beijing on October 17. During the event, BOI Secretary General Narit Therdsteerasukdi handed the investment certificate to Changan Chairman Zhu Huarong for the project.
The Chinese automaker aims to allocate 8.8 billion baht ($240 million) for the construction of a new energy vehicle (NEV) factory in Thailand. It expects to hit an output of up to 100,000 units in the project’s first phase.
About the project
The first phase of the project aims to reach an annual production capacity of 100,000 NEVs. Meanwhile, the second phase will double that output to 200,000 units per year.
The Thailand-made NEVs will initially hit the local market. However, the company also plans to export them to foreign markets, including Australia, New Zealand, Britain, and South Africa.
According to Yicai Global, the Thai factory will manage the country’s production of all-electric, plug-in hybrid, and extended-range hybrid vehicles.
Changan plans to develop the factory in the WHA Eastern Seaboard Industrial Estate in Thailand’s Rayong province.
Changan’s global presence
Changan already operates 400+ car sales and service stores across 60 countries along the Belt and Road.
According to the company, these countries accounted for 90% of its exports in 2022. It delivered over 12 billion yuan output value.
Now, the company is planning to penetrate the Thai market with a new NEV factory. It will undoubtedly face major competition with co-Chinese automakers like BYD and Neta.
See Also:
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- ACWA Power signs MoU to support Thailand’s decarbonization journey
- Tesla starts customer deliveries of Model 3/Y in Thailand
Changan’s decision to invest in Thailand is unsurprising, considering that the country is currently the region’s leading electric vehicle market. The Thai Government also continues to promote the shift to electric mobility as part of its strategy to advance the EV production hub in the ASEAN.
