With a $1.44 billion commitment to build production facilities in Thailand’s largest auto manufacturing base in Southeast Asia, which has traditionally been controlled by Japanese firms, Chinese electric vehicle makers are flooding the country. With a goal of converting around 30% of the nation’s yearly car production to EVs by 2030, Thailand’s government has encouraged …
With a $1.44 billion commitment to build production facilities in Thailand’s largest auto manufacturing base in Southeast Asia, which has traditionally been controlled by Japanese firms, Chinese electric vehicle makers are flooding the country. With a goal of converting around 30% of the nation’s yearly car production to EVs by 2030, Thailand’s government has encouraged this new wave of investment and courted Chinese companies.
By purchasing a factory from General Motors (NYSE:GM) in 2020, China’s Great Wall Motor made an early bet on Thailand. It plans to invest 22.6 billion baht ($647.38 million) in turning the facility into a regional hub for the manufacturing of EV and hybrid vehicles. Next year, the automaker will begin producing its well-liked little Ora Good Cat EV in Thailand. It will also establish operations there for its electronics, powertrains, and seating-making subsidiaries MIND Electronics, HYCET, and Nobo Auto. Chinese rival SAIC Motor, which owns MG Motor and is in joint venture with Thai conglomerate Charoen Pokphand Group, released its first EV in the nation in 2019. The company stated in April that it was making an investment of 500 million baht to increase the capacity of its current factory for producing EV components and batteries.
BYD, a major manufacturer of electric vehicles in China, is investing 17.9 billion baht to build a new plant in Thailand that will begin producing 150,000 passenger cars annually by 2024, some of which would be shipped to Southeast Asia and Europe. As of next year, the electric NETA V model will be produced domestically thanks to cooperation between Thailand’s Bangchan General Assembly and China’s Hozon New Energy Automobile.
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