29-8-2024 (BANGKOK) In a significant boost to Thailand’s burgeoning electric vehicle (EV) industry, Chinese state-owned automaker Changan Automobile has unveiled ambitious plans to establish a major manufacturing hub in the Southeast Asian nation. The company aims to produce an impressive 200,000 units annually by 2026, with a strong emphasis on local sourcing and production.
Changan, one of China’s “big four” EV manufacturers, is making swift progress on its 10 billion baht factory in Rayong province. The facility, which received promotional privileges from Thailand’s Board of Investment (BOI) in 2023, is already 80% complete and is slated to commence operations in the first quarter of 2025.
Shen Xinghua, managing director of Changan Auto Southeast Asia, outlined the company’s strategic vision, stating, “Our Rayong factory will produce a range of electric vehicles, including standard EVs, range-extended electric vehicles (REEVs), and plug-in hybrid EVs. We’re targeting an initial output of 100,000 units in the first year, scaling up to 200,000 units annually thereafter.”
The automaker’s plans extend beyond merely serving the Thai market. Changan intends to manufacture both left-hand and right-hand drive models, eyeing exports to diverse markets including Indonesia, Australia, New Zealand, South Africa, and the United Kingdom.
In a move that underscores its commitment to the local economy, Changan plans to employ approximately 300 Thai personnel, constituting 70% of its workforce. The company is also dedicated to developing a robust local supply chain, aiming to source parts from over 300 domestic suppliers.
“Producing EVs in Thailand currently incurs 30% to 80% higher costs compared to China,” Shen explained. “Our strategy is to prioritise the development of a local supply chain network, which will support high-volume manufacturing and help reduce costs.” The automaker aims to achieve an impressive 80% local content ratio in its EVs by 2026.
To support its operations, Changan is constructing a substantial 3,000-square-metre warehouse capable of storing over 40,000 parts across 2,000 different types. This facility will enable rapid 24-hour delivery of 95% of parts to Changan service centres nationwide.
The Chinese automaker is not wasting any time in establishing its presence in the Thai market. It plans to launch the Avatr 11 model next month, followed by the Deepal E07 at the November motor expo. Changan also aims to expand its retail and service network, targeting 60 showrooms and service centres by the end of this year, with plans to increase to 100 branches in 2025.
Reflecting on the company’s progress, Shen noted, “In just about a year of operations in Thailand, Changan has sold over 8,000 vehicles of our Deepal and Lumin models, contributing nearly 1.2 billion baht in tax revenue to the Thai government.”
