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Changan Auto Establishes First EV Production Base in Thailand

With an investment of 9.8 billion Baht, Thailand becomes Changan Auto’s First Right-Hand Drive EV Production Base Outside of China.

To establish its first right-hand drive electric vehicle (EV) production plant outside of China, Changan Automobile has announced it will invest 9.8 billion baht (US$ 285 million) in Thailand.

According to the Thai Board of Investments and Changan Chairman Zhu Huarong, the Chinese automaker Changan will invest $285 million, or 9.8 billion baht, in Thailand, with plans to invest a total of $581 million, or 4 billion yuan, over the following few years.

The facility, which will be situated in the Eastern Economic Corridor, will start producing automobiles in 2024 with a first-phase capacity of 100,000 vehicles annually and a second-phase capacity of 200,000 vehicles annually. The right-hand drive electric and hybrid vehicles, as well as batteries, will be manufactured in Changan’s Thai plant and shipped to a number of nations. In terms of global EV sales in 2022, Changan came in at position 15.

The action is a part of Changan Automobile’s plan for international growth as it strives to establish itself as a premier EV brand. More than 60 nations and regions already have a presence for the corporation, and it has sold more than 10 million cars globally. With sales of over 300,000 units, Changan Automobile held the top spot in China’s EV market share in 2020.

Thailand is well-known for being a significant Southeast Asian hub for traditional auto manufacturing, but it is also quickly becoming a producer of electric vehicles (EVs). Thanks to its supportive government regulations, advantageous location, and qualified workforce, the nation has drawn a number of international and regional firms who are making investments in the EV supply chain, manufacturing, and battery technology.

The bonus program for BOI

The Board of Investment (BOI), which provides numerous incentives for EV production of all types, including tax holidays, import duty exemptions, and subsidies, is one of the main forces behind Thailand’s EV revolution. In addition to reducing greenhouse gas emissions and reliance on fossil fuels, the BOI seeks to encourage EV sales, the EV supply chain, and manufacture in Thailand.

Several well-known businesses that have joined the BOI’s incentive programs include:

Mercedes-Benz: The German luxury automaker plans to begin producing its all-electric EQS model in Bangkok by the end of 2022, making Thailand its first location in Southeast Asia and one of just seven locations in the world to do so.

Toyota has announced that it will introduce 10 new EV models in Thailand by 2025, including fuel cell electric vehicles (FCEV), plug-in hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV). Toyota is the largest vehicle manufacturer in both the world and Thailand.

The Chinese manufacturers Great Wall Motor and SAIC Motor, who have contributed to China being the largest EV market in the world by volume, have selected Thailand as their ASEAN production hub. In contrast, SAIC Motor wants to build 50,000 EVs annually by 2024, while Great Wall Motor expects to produce 80,000 EVs annually in Thailand by 2023.

BYD: Another Chinese EV manufacturer, BYD recently agreed to establish a factory in the province of Rayong to start producing 150,000 passenger vehicles annually by 2024. In addition, the company plans to ship 10,000 units to Southeast Asian and European nations and sell them in Thailand.

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