Electric Vehicle Boom In Thailand, Driven By China

Anis

12-7-2023

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Great Wall Motor (GWM) invests 22.6 billion baht (approximately RM3 billion) in Thailand.

Thailand has long been a stronghold for automobile manufacturing. Touted as "the Detroit of Asia," Thailand has been very aggressive in its electrification efforts and efforts by the country’s Board of Investment (BoI) to attract investment looks like it’s paying off greatly, The Bangkok post reported.

Thailand aims to convert around 30% of its annual 2.5 million vehicle production into EVs by 2030, with ambitions to become the main regional production hub, for which it is aggressively pursuing investment.

The Chinese wave is already reshaping Thailand's auto industry, as Chinese EV makers bring in their suppliers and local Thai firms, including those with long-standing ties to Japanese firms, such as Siam Motors, seek new partnerships.
According to Reuters, Siam Motors' position reflects a rapid shift in Thailand, where Chinese investments totaling USD1.44 billion (approx RM6.7 billion) since 2020, including BYD and Great Wall Motor, have opened a new front in a market previously dominated by Japanese automakers.

Great Wall Motor (GWM) expands its presence in Thailand after purchasing a factory in Rayong from General Motors (GM) in 2020 and investing 22.6 billion baht (approximately RM3 billion) to transform it into a regional production hub for EV and hybrid vehicles.

The Ora Good Cat will be manufactured at GWM's Rayong plant beginning next year, and the company will also bring in its subsidiaries MIND Electronics, HYCET, and Nobo Auto to make electronics, powertrains, and seating. Meanwhile, SAIC Motor, which owns MG Motor, has partnered with Thailand conglomerate Charoen Pokphand Group to expand its existing plant to produce EV parts and batteries for 500 million baht (approx RM66.9 million).

BYD is another Chinese EV manufacturer investing in Thailand, putting up 17.9 billion baht (approx RM2.4 billion) for a new facility in Rayong, which is expected to produce 150,000 cars per year for domestic and export markets starting in 2024.
In May of this year, China's Hozon New Energy Automobile and Bangchan General Assembly signed an agreement that will see production of the Neta V begin in Thailand next year.
More deals are in the works, according to the Thailand Board of Investment (BOI), with Changan Automobile planning to invest 9.8 billion baht (approx RM1.3 billion) in its first right-hand drive EV factory outside of China.

Aion, a subsidiary of Guangzhou Automobile Corporation (GAC), will invest 6.4 billion baht (approx RM857 million) in Thailand to produce EVs. Other automakers that are set to make headway in Thailand are Chery and Geely. Siam Motors is also in talks with several Chinese automakers about potential partnerships, particularly for high-end electric vehicles (EVs), according to vice-president Sebastien Dupuy, referring to previously unreported discussions. "There is a market growing for that, and we want to capture the growth."