UOB and Changan join hands for EV expansion in ASEAN
United Overseas Bank (UOB) and Chinese automaker Changan Automobile announced on Friday their strategic partnership for Changan's electric vehicles (EVs) expansion plans in ASEAN.
Under the partnership, UOB will provide Changan with a range of financial services, including:
▪︎ Global credit services: Provide Changan with access to funding for its expansion plans, including the development of new EV models, the construction of new manufacturing facilities, and the expansion of its dealer network.
▪︎ Foreign exchange services: To help manage foreign exchange risks.
▪︎ Risk management services: To help the automaker mitigate its risks, such as credit risk and market risk.
Green financing: To help Changan finance its EV projects, which are aligned with UOB's commitment to sustainability.
Changan, a leading Chinese automaker, has been manufacturing EVs since 2016. The company has a strong presence in China and is expanding its operations to other regions, including ASEAN.
Tan Choon Hin, UOB Thailand's president and CEO, said Changan, which has received positive feedback from its recent official entry into the electric vehicle market in Thailand, is committed to using Thailand as the region's EV production base.
UOB, as a leading regional bank, has strong foundations in both Thailand and ASEAN. Strong financial products and services network are ready to support Changan's business overseas business expansion plans, Tan said.
Chen Jianfeng, vice president and general manager of finance at Changan Automobile Co Ltd, said UOB was playing an important role in supporting the company's entry into the EV market in Southeast Asia.
The partnership between UOB and Changan is a significant development for the growth of the EV market in ASEAN, he said, adding, UOB's financial services would help Changan accelerate its expansion plans and make EVs more accessible to consumers in the region.
The partnership between UOB and Changan is a win-win for both parties, he said. UOB would gain access to a growing market for EVs in ASEAN, while Changan would gain access to the financial resources it needed to expand its operations in the region, he explained.
The partnership is also a positive development for the growth of the EV market in ASEAN. UOB's financial services would help make EVs more affordable and accessible to consumers in the region, which would help drive demand for EVs, he said.