Changan Automobile, a Chinese state-owned entity, unveils its plan to start vehicle production in Thailand by early 2025. This venture, situated in Rayong province, Thailand’s automotive hub, follows Changan’s initial expression of interest in April, after preliminary discussions with the Thai Board of Investments (BOI).
The investment involves $280 million (THB10 billion), earmarking the construction of a facility with a 100,000-vehicle annual production capacity and establishing local distribution for vehicles and parts.
This strategy aims to set up a production capacity of 1.2 million vehicles annually outside China by 2030. The plant will focus on battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), targeting markets like Southeast Asia, Australia, New Zealand, South Africa, and the UK.
Changan anticipates an output of 30,000 to 50,000 SUVs in the first year, with potential expansion to 200,000 units based on demand. While the company’s Thai-built lineup includes SUVs, as evidenced by nearly 3,600 orders at the Bangkok International Motor Expo, plans for sedans remain unannounced.
Changan’s commitment to Thailand as a key international hub is evident. Last year’s sales figures show 2.35 million vehicles, including 271,000 EVs, underlining its market prowess.
Joining other Chinese automakers like BYD, Great Wall Motors, SAIC Motor, GAC Group, Geely, Chery, and Hozon, Changan is part of a trend-setting up regional hubs in Thailand, signifying a transformative phase in the automotive sector.
Shen Xinghua, Changan Auto Sales (Thailand) Company’s managing director, recognizes the escalating competition in the Thai electric vehicle (EV) market. With Japanese, European, and US players enhancing their product offerings, he notes, “There are seven Chinese automakers in Thailand with 30 EV models. This is beginning to shake up the local automotive industry and is pushing other global automakers to respond.”
Changan’s strategic Thai expansion is not just a significant step for the company but also a testament to the evolving dynamics of the global automotive industry, especially in the electric vehicle sector. As competition heats up, Changan’s Thai venture is poised to be a key chapter in the company’s growth and a reflection of changing industry trends.
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