31-5-2023 (BANGKOK) Major Chinese automaker Geely is in the early stages of considering its entry into Thailand’s electric vehicle (EV) market, including the possibility of importing models or establishing local manufacturing, according to sources familiar with the matter.
The discussions involve the potential introduction of an entry-level electric car and an electric pickup truck from Geely’s new Radar brand, the sources, who requested anonymity, told Reuters.
When asked about the plans, a representative from Geely stated that the company has no such intentions at the moment, without providing further details or confirming any ongoing discussions related to investments in Thailand.
Thailand’s Board of Investment held talks with five prominent Chinese EV manufacturers, including Geely, during a roadshow in China in April, according to Narit Therdsteerasukdi, Secretary-General of the agency. The other companies involved were BYD, Chongqing Changan Automobile, JAC Motors, and Jiangling Motors.
Narit mentioned that all the companies expressed a keen interest in Thailand’s policy to establish a regional EV production base and an integrated EV supply chain, although he did not provide specific details about the discussions with Geely.
As the world’s tenth-largest automotive producer, Thailand is actively seeking new investments to protect and diversify its manufacturing base, which has traditionally relied heavily on Japanese brands and combustion engines. The country aims to convert approximately 30% of its annual production of 2.5 million vehicles into EVs by 2030, as outlined in a government plan.
BYD and China’s Great Wall Motor are already in the process of establishing local EV production in Thailand.
Discussions with Geely have faced additional complexity due to the company’s decentralized structure, which grants brand-level operating groups such as Geometry and Radar Auto a significant level of autonomy, according to one of the sources.
“They have to decide what model to bring to Thailand,” the second source familiar with the discussions stated, adding that Geely is considering the possibility of setting up a manufacturing plant in the country.
Thailand provides certain subsidies for EVs, conditional on automakers committing to bringing car and parts production to the country over a specified period.
Geely, which owns various brands including Volvo, Polestar, Lotus, and Zeekr, recently increased its stake in luxury carmaker Aston Martin. The company also holds a 49.9% stake in Malaysian automaker Proton, giving it a presence in Southeast Asia.
Geely launched its electric car brand, Geometry, in 2019. Sales in China experienced significant growth in 2022, primarily driven by the Geometry A sedan. In February, Geely commenced deliveries of the Radar RD6, China’s first mass-market electric pickup truck.
China’s Great Wall Motor has expressed interest in establishing a research and development center in Thailand to focus on battery-powered pickup trucks.
Pickup trucks play a crucial role in Thailand’s auto market, accounting for over half of overall light vehicle sales last year. This segment is primarily dominated by Japanese automakers, including Toyota Motor Corp and Isuzu Motors Ltd.
