SOUTHEAST ASIA: THAI REPORT
Changan Automobile Group, a major Chinese automobile manufacturer, will establish a new plant for electric vehicles such as EVs in Thailand, according to the Board of Investment of Thailand (BOI). The investment will be US$ 284 million (9.8 billion baht or about 38 billion yen), and construction is expected to be completed within a few years. The initial production capacity will be 100,000 vehicles a year, and on-board batteries will also be manufactured. The Thai government has established an incentive program to encourage local production of EVs, and Chinese EV giants have been actively investing in the country.
In addition to EVs, the new plant will produce electric vehicles such as HVs and PHVs. The company plans to supply vehicles to Southeast Asian countries, Australia, South Africa, and other markets.
Changan Automobile is the fourth largest car OEM in China, selling more than 2 million new vehicles in 2022. The company also has established a joint venture with Mazda and is strengthening the introduction of electric vehicles in China. The company plans to introduce electric vehicles outside of China as well, and this investment is part of that strategy.
In Thailand, BYD, a major Chinese EV manufacturer, will also establish a plant for finished vehicles in Rayong Province in the eastern part of the country, which will be completed in 2024 and is expected to produce 150,000 passenger cars a year. Great Wall Motor also plans to start local production in the same year. In 2022, the Thai government introduced an incentive program to encourage EV production, and many Chinese car giants are taking advantage of the program.
Source: The Nikkei
PSR Analysis: Changan Automobile, one of the “Big 5” Chinese automakers, has joint ventures with several foreign automakers. SAIC, BYD, GWM, and others have also entered the Thai market and are trying to penetrate the stronghold of Japanese automakers in the country.
Comparing Japanese and Chinese EVs with the same specifications, Chinese EVs are likely to have the advantage in the cost battle. The focus will be on how the reliability of the Japanese brand, including its extensive service network and after-sales support, will stand up to the Chinese offensive. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
