More significant Chinese electric vehicle manufacturers are considering Thailand as an alternative location for production and exporting to nearby economies. Recent incentives for Chinese automakers to invest in the country support the prospects, and money is flooding in.
Great Wall Motors (GWM) and BYD already have factories in the Southeast Asian nation, while Changan, GAC Aion, and Hozon now also plan to open plants in the region’s top car-manufacturing hub to secure a foothold in Thailand’s ‘trailblazing’ car manufacturing industry.
According to the latest information, Hozon New Energy Automobile Company will begin production in Thailand in 2024 with plans to export throughout Southeast Asia, making it the most recent EV manufacturer from China to start establishing a supply chain in the region’s leading automobile manufacturing hub.
Related: Thailand Nabs $285m Changan EV Plant as Chinese Investment Booms
Changan and GAC Aion have also announced plans to invest a total of 16.2 billion baht (US$470 million) in EV production facilities in the country. GWM and BYD have already established production plants in Thailand’s eastern Rayong province while MG is constructing its EV battery plant in the Chonburi region. According to Narongsak Putthapornmongkol, the Chairman of the Thai-Chinese Chamber of Commerce:
“EV is the most trailblazing industry right now as seen through investments from MG, Great Wall Motor, and BYD.”
According to the country’s Board of Investment, Thailand saw applications for foreign investment more than double to 155.3 billion baht (US$44 million) in the three months through March from a year earlier. Companies from South Korea, Singapore, and China were the leading applicants.
According to data, Chinese companies intended to invest 25 billion baht during the time, up 87% from a year earlier, in sectors such as solar cell manufacture, battery manufacturing, electronics, and petrochemicals. Due to demand from businesses opening factories to produce EVs, auto parts, and electronics, analysts anticipate a further rise in Chinese investment in the near future.
Source: South China Morning Post
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