TUESDAY, April 16, 2024

Changan closes THB8.8bn deal to set up EV plant in Thailand

Changan Automobile, one of China’s “big four” state-owned car manufacturers, signed an agreement on Thursday to set up its electric vehicle (EV) production base in Thailand with an investment of over 8 billion baht (US$244 million).

Subsidiary Changan Auto Southeast Asia is purchasing a 250-rai (40-hectare) plot at the WHA 4 industrial estate in the Eastern Economic Corridor (EEC), Rayong province.

EVs are due to start rolling off the production line in 2025 for export worldwide.

Managing director Shen Xinghua said the investment was a mark of the company’s confidence in Thailand and the EEC’s promotion zones, workforce and infrastructure.

He also cited the government's EV 3.5 promotion packages, due to launch next year.

EV 3.5 will provide purchase subsidies of around 100,000 baht per vehicle for imported EVs and require carmakers to offset imports with proportional domestic production.

Changan closes THB8.8bn deal to set up EV plant in Thailand

Shen said Changan's phase-one investment of over 8.862 billion baht covers production of right-hand drive vehicles, including battery EV, plug-in hybrid EV (PHEV), and range-extended EV (REEV) to penetrate the Thai market and export to Asean, Australia, New Zealand, the UK and South Africa.

The plant will have production capacity of 100,000 vehicles per year from 2025.

Phase two will see a 300-rai expansion to boost production capacity to 200,000 vehicles per year, Shen added.

Changan models will be displayed at the 40th Thailand International Motor Expo 2023 at Impact Exhibition and Convention Centre in Nonthaburi from November 30 to December 11. 

Changan closes THB8.8bn deal to set up EV plant in Thailand

Chinese EV manufacturers have now invested over 52.19 billion baht ($1.44 billion) in Thailand, said Jareeporn Jarukornsakul, chair of WHA.

Under its “30@30” policy, Thailand aims to boost EV production to 30% of total vehicles manufactured, or 725,000 units per year, by 2030.