Changan Automobile is set to open its first electric vehicle manufacturing plant in Southeast Asia in Thailand during the first quarter of next year, with an investment budget exceeding 10 billion baht.
Shen Xinghua, managing director of Changan Auto Southeast Asia, a subsidiary of the Chongqing-based company, stated, “We anticipate starting production of battery electric vehicles (EVs) in March 2025.”
The plant will focus on producing right-hand drive EVs for the local market and will also serve as a production hub for exporting left-hand drive EVs, according to Shen. Changan aims to market these vehicles to customers in Australia, New Zealand, South Africa, and the UK.
As part of Thailand’s initiative to establish itself as a regional EV production center, several Chinese EV manufacturers, including Changan, are taking advantage of government policies that provide tax incentives and subsidies to enhance the production and consumption of EVs.
Changan has raised its investment budget from 8.86 billion to 10 billion baht, allocating funds for a factory on a 300-rai site in Rayong, as well as for the development of showrooms and a parts warehouse. Construction of the EV plant is currently 80% complete, according to Shen.
In the first phase of production, Changan plans to manufacture up to 100,000 vehicles annually, with the second phase, set to begin in 2026, aiming to increase that capacity to 200,000 vehicles per year. The factory is expected to focus on producing battery EVs, plug-in hybrids, and range-extended EVs (REEVs). REEVs are designed to address concerns about battery life for long-distance travel by combining electric drive technology with a gasoline engine that charges the battery while the vehicle is in motion.
Due to a sluggish economy, diminished purchasing power, and stricter loan criteria from banks leading to a significant decline in auto sales, Changan has revised its domestic sales target for 2024 to between 15,000 and 18,000 units.
