Thailand’s automotive industry is poised for a boost from the government’s proposed car trade-in scheme, with Omoda & Jaecoo (Thailand) saying the initiative could lift sales, reinforce supply chains, and accelerate the country’s transition toward carbon neutrality.
The company, part of Chery Automobile, believes the policy will encourage motorists to replace internal combustion engine (ICE) vehicles with cleaner alternatives such as battery electric vehicles (BEVs), hybrids, and plug-in hybrids.
Under the proposal, eligible new vehicles must be manufactured domestically to support employment and strengthen Thailand’s auto parts industry.
Cedric Cui said the timing of the policy is ideal, noting it could help revitalise both the automotive sector and its supply chains while accelerating the shift to new energy vehicles.
However, the industry continues to face headwinds from volatile oil prices and rising logistics costs, partly driven by geopolitical tensions in the Middle East. Mr Cui also highlighted supply constraints in key materials such as plastics and helium — essential for semiconductor production — as ongoing challenges for manufacturers.
Despite these pressures, the company has committed to keeping vehicle prices stable to avoid passing additional costs on to consumers.
Bill Zhang described the trade-in programme as a “new hope” for the industry, though details of the scheme are still awaited.
Omoda & Jaecoo recently opened a new BEV production facility in Rayong’s Nikhom Phatthana district, built on 104 rai with an investment of 5 billion baht and an annual capacity of 80,000 units. Initial production is expected to reach 3,000–4,000 vehicles, primarily for the domestic market before expanding exports to Malaysia. A battery plant is also in the pipeline to support local EV production.
Currently, around 45% of the company’s vehicle components are sourced locally, with plans to increase this share in line with government requirements.
Globally, Chery Automobile operates eight R&D centres, 19 manufacturing facilities, and a network of more than 300 suppliers, supported by over 3,000 sales and service locations. The company recently became the first Chinese automaker to exceed 6 million cumulative exports, with overseas shipments reaching 148,777 units in March — a 72% increase year-on-year.