4-9-2023 (BANGKOK) Omoda & Jaecoo International Co, a subsidiary of China’s state-owned automobile giant Chery International, is gearing up to seek investment privileges from Thailand’s Board of Investment (BoI) for the establishment of an electric vehicle (EV) manufacturing facility in the country.
According to Qi Jie, the National Director of Omoda & Jaecoo International in Thailand, the company will unveil its detailed investment and business plans within the next couple of months.
Chery International, a prominent player among China’s top 10 vehicle manufacturers, is poised to introduce two EV brands, Omoda and Jaecoo, in Thailand. Mr. Jie cited optimism about a positive response from local consumers towards these brands.
The ambitious investment blueprint by Chery in Thailand comprises three phases. The first phase, spanning 2024-2025, will see the establishment of an EV production capacity of approximately 18,000 units annually.
As part of their strategy, the company is set to engage in discussions with Arun Plus Co, a subsidiary of Thailand’s national oil and gas conglomerate, PTT Plc, regarding a potential collaboration during the initial phase. This cooperation may involve Arun Plus Co manufacturing EVs for Omoda & Jaecoo, preceding the eventual setup of the company’s dedicated manufacturing facility.
Moving into the second phase, from 2026-2027, Chery aims to scale up production capacity to about 50,000 units each year, with 45,000 units designated for export and the remainder serving the domestic market.
The third and final phase, spanning 2028-2030, will witness Omoda & Jaecoo’s production capacity surpassing 100,000 units annually, with 60,000 units earmarked for overseas markets.
Mr. Jie hinted at ongoing discussions with Thai partners, exploring the prospects of a long-term joint venture in EV car manufacturing. “The company is discussing with Thai companies investment in an EV manufacturing plant and its location,” Mr. Jie disclosed.
Thailand marks the third Southeast Asian nation chosen by Chery for investment, following Indonesia and Malaysia. The new manufacturing facility in Thailand will be exclusively dedicated to producing EVs for both domestic and international markets, distinguishing it from the production of internal combustion engine products in Indonesia and Malaysia, as stated by Mr. Jie.
However, Chery awaits the approval of Thailand’s new government and the National EV Policy Committee for the “EV 3.5” scheme. This scheme represents a crucial incentive for the promotion of EVs, with the current 3.0 scheme set to expire in December this year. Any delay in its approval could potentially affect Chery’s investment timeline in Thailand, although Mr. Jie emphasized their commitment to the Thai market.
In addition to manufacturing, the company envisions the establishment of approximately 30 showrooms and the launch of after-sales services to cater to Thai customers. Omoda & Jaecoo anticipates collaborating with 15-20 dealers across the country as they embark on this exciting EV journey.
