Chinese electric vehicle (EV) manufacturers have committed to invest USD1.44 billion (around RM6.7 billion) to set up production facilities in Thailand, Reuters reports. This influx of foreign investment is spurred on by incentives provided by the Thailand government to bolster the local EV industry – the country is aiming for EVs to make up 30% of annual vehicle production by 2030.

Great Wall Motor (GWM) is one of several Chinese EV makers to make headway in Thailand after it acquired a factory in Rayong from General Motors (GM) in 2020 and will spend 22.6 billion baht (around RM3 billion) to turn it into a regional production centre for EV and hybrid cars.

Starting next year, the Ora Good Cat will be produced at GWM’s Rayong plant, 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, is partnered with Thailand conglomerate Charoen Pokphand Group and is investing 500 million baht (around RM66.9 million) to expand its existing plant to produce EV parts and batteries.

Another Chinese EV maker investing in Thailand is BYD, which is putting up 17.9 billion baht (around RM2.4 billion) for a new facility in Rayong, which is expected to roll out 150,000 cars annually from 2024 for domestic and export markets. In May this year, China’s Hozon New Energy Automobile and Bangchan General Assembly inked an agreement that will see production of the Neta V commence in Thailand beginning next year.

According to the Thailand Board of Investment (BOI), further deals are in the pipeline, with Changan Automobile set to invest 9.8 billion baht (around RM1.3 billion) to set up its first right-hand drive EV factory outside of China.

Other brands on their way in include Aion – a subsidiary of Guangzhou Automobile Corporation (GAC) – that will invest 6.4 billion baht (around RM857 million) to produce EVs in Thailand, while Chery Automobile is said to enter the market next year with “strong interest” in investments. Geely is also in the midst of evaluating EV models for import and local manufacturing.

At present, Thailand is a big market for EVs in Southeast Asia with 51,000 units sold in 2022. In the first half of 2023, over 31,000 EVs were registered in Thailand, no doubt helped by government subsidies to narrow the price gap between EVs and combustion engine cars.

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