Chinese automaker GAC Aion will develop its first-ever international electric vehicle production hub in Thailand’s Eastern Economic Corridor (EEC), The Nation reports, citing the company announcement on September 9.
“This factory will be the right-hand drive EV car production hub, exporting to right-hand drive countries around the world.”
Gu Hainan, GAC Aion Managing Director
Plan details
GAC Aion announced its expansion and electrification strategy by establishing a new EV factory in the EEC.
Notably, the EEC consists of parts of Chon Buri, Rayong, and Chachoengsao with various thriving industries like EV production.
The GAC-owned brand plans to build its first all-electric vehicle model at the planned factory as early as June 2025, Bangkok Post indicated.
“We expect to assemble the Aion Y Plus, and the company has visited the EEC and will make a decision within days to select a province where its factory will be built.”
Gu Hainan, GAC Aion Managing Director
However, the company has yet to decide on the final site for the new factory in the EEC.
Purpose
In hindsight, GAC Aion previously stated that it would invest six billion baht (RM789 million) to develop EV and battery production factories in the country in the next 3-5 years. According to Paultan.org, the Chinese automaker aims to make Thailand its new global production and export hub.
The new Thai factory will import EV parts and then locally assemble them. However, the second phase of the plan will see the factory build major EV parts for local production.
It also aims to increase Aion Y Plus SUV sales to 3,000 units in 2023. This model has a base price of 1.06 million (RM139,352) to 1.2 million baht (RM157,677).
All that said, the company aims to leverage the new factory to boost its sales and build a strong presence in the local market. It will also tap into the country’s flourishing EV industry.
“We chose Thailand because of three factors: a major car manufacturing base in Asean, the fast-growing EV market with high purchasing power among buyers, and the government’s policy to promote the EV industry.”
Gu Hainan, GAC Aion Managing Director
GAC Aion’s footprint in Thailand
GAC Aion has just launched the Aion Y Plus in Bangkok on September 9.
Nonetheless, it has already started establishing a reliable sales network in Thailand. According to the report, it has deployed about 30 sales outlets nationwide. However, 25 of them are concentrated in Bangkok.
This year, the Chinese automaker aims to increase that number to 50 outlets and service centers.
See Also:
- GAC Aion’s battery base starts construction to meet annual demand for 600,000 EVs
- EV sales accounted for 15% of global auto sales in July
- Chinese electric automakers already invested $1.44B in Thailand
- China Update: EV Adoption rate, Tesla and Chinese EV makers market share
- Global plug-in car sales surged 70% in April 2023
Thailand marks the Chinese brand’s first-ever foreign investment beyond its home market, China. This initiative will undoubtedly aid the company’s electrification efforts, considering the notable progress of the country in its EV industry.
The Thai factory will finish construction in H1 2024 and start production in June 2025.
