Chinese electric vehicle players continue establishing their presence in Thailand’s blossoming industry, with investments now amounting to $1.44 billion.
The substantial investment is reportedly allocated for production plant development projects in Southeast Asia’s largest automaking center, which Japanese brands originally conquered.
Interestingly, the Government of Thailand supported this fresh investment with its helpful incentives and negotiations with Chinese brands. Through these initiatives, Thailand aims to have EVs contributing approximately 30% of the country’s annual auto production by 2030.
Ongoing Chinese investments
Great Wall Motor is among the first Chinese automaker to make a move toward the Thai market. In 2020, GWM bought General Motors’ factory in the country for its planned regional EV and HEV production hub, with plans to invest 22.6 billion baht ($647.38 million). Additionally, the automaker also aims to develop its new EV battery plant in the country.
GWM expects to begin the production of its Ora Good Cat EV in the country as early as 2024. It also aims to bring its business units MIND Electronics, HYCET, and Nobo Auto to Thailand to build a reliable supply chain. These companies produce electronics, powertrains, and seating, which can potentially aid the automaker’s production plans in the domestic industry.
On the other hand, MG Motor’s parent company SAIC Motor already has an existing partnership with Thai conglomerate Charoen Pokphand Group. In hindsight, the automaker successfully launched its first EV offering in the country in 2019.
Apart from that, SAIC aims to invest 500 million baht to expand its current EV parts and battery factory, the automaker announced in April.
Chinese EV leader BYD has also set its sights on the country, with plans to invest 17.9 billion baht to develop its new EV production plant. The EV giant expects to have an initial production output of 150,000 passenger cars annually from 2024. The company also announced plans to distribute these Thai-made EVs to Southeast Asian and European markets.
Furthermore, Hozon New Energy Automobile has also partnered with Thailand’s Bangchan General Assembly for the local production of its all-electric NETA V model in 2024.
Planned Chinese investments
Apart from the ongoing investments of Chinese automakers mentioned above, many planned investments are still under negotiations, Thailand Board of Investment (BOI) said,
Chinese Government-owned Chongqing Changan Automobile will reportedly allocate 9.8 billion baht for the development of its first RHD EV production plant beyond China.
Apart from that, the BOI also disclosed that GAC-owned brand GAC Aion will also invest over 6.4 billion baht for its new production plant in Thailand.
Chery Automobile has also grown a significant interest in Thai’s car production industry, with plans to penetrate the domestic market as early as 2024.
On the other hand, Geely is reportedly in the planning phase for its future entry into the Thai market.
The growing interest of Chinese automakers in Southeast Asia’s second-biggest auto industry undoubtedly accelerates Thailand’s EV market.
According to the BOI, the country registered more than 31,000 EVs in H1 2023, indicating a threefold growth from the full year 2022.
See Also:
- Great Wall Motor to erect an EV battery factory and research center in Thailand
- Changan to develop a new EV production plant in Thailand
- BYD again leads Thailand’s EV sales in February, while Tesla is catching up
- Thailand promotes investment for electric vehicle production
- China’s BYD announced new EV hub in Thailand to produce 150,000 cars by 2024
The arrival of more Chinese models and significant government initiatives effectively reduced the price difference between EVs and internal combustion engine vehicles.
In that sense, Thai’s most popular EV in 2022 was a Chinese model – Great Wall’s Ora Good Cat. It currently has a base price of approximately 828,500 baht. Meanwhile, Hozon’s NETA V costs 549,000 baht.
