According to the Board of Investment, Changan Automobile, a Chinese automaker, has agreed to invest THB9.8bn (US$286m) in a Thai factory that will supply electric and hybrid vehicles for domestic sale and export.
Changan Auto is a state-owned company based in Chongqing that plans to build a plant in Thailand with an initial capacity of 100,000 vehicles per year to supply Thailand and export to other ASEAN right-hand drive markets, as well as Australia, New Zealand, South Africa, and the UK. Changan Auto is among a growing number of Chinese automakers, including Great Wall Motors, BYD Auto, and SAIC Motor, that have chosen Thailand as a vehicle manufacturing hub for key overseas markets.
Changan Auto has targeted production of three categories of electrified vehicles, which will include battery electric (BEV), plug-in hybrid (PHEV), range extender EV (REEV), and batteries.
The company plans on submitting a formal application by the end of May. Changan Auto is currently China’s fourth largest automaker, behind market leader BYD, having sold 2.34 million units globally last year. It is targeting 2.8 million sales in 2023 and is backing it up with an aggressive new energy vehicle (NEV) product offensive that includes launching 12 new models under the Changan, Deepal, and Avatr brands. The last brand being a premium brand it established with Huawei and battery manufacturer CATL.
The company also has a vehicle production joint venture in Chongqing with Ford and Mazda.
According to BOI secretary-general Narit Therdsteerasukdi in a statement, “Changan’s decision to invest in Thailand is a significant milestone in promoting the country as the world’s major EV production base.”
BOI said it had so far approved 26 separate EV industry investment proposals from 17 companies, valued at a combined THB87bn. Another Chinese BEV maker, GAC Aion, part of the state-owned GAC Group, is expected to submit a proposal by the end of the second quarter to invest THB6.5bn in Thai production.
