Changan Automobile, one of China's leading electric vehicle (EV) manufacturers, is set to open its first EV factory in Thailand in March 2025. This facility, located in Rayong province, represents a significant investment in the region's burgeoning EV sector, with an initial budget exceeding 10 billion baht (approximately $290 million) allocated for its development.

Factory Overview

The new factory will have a production capacity of 100,000 vehicles annually in its first phase, with plans to double this capacity to 200,000 units by 2026. The facility will primarily produce battery electric vehicles (BEVs), plug-in hybrids, and range-extended electric vehicles (REEVs) designed for both the local market and export to countries including Australia, New Zealand, South Africa, and the UK.

Changan's investment is part of a broader trend among Chinese automakers, who are capitalizing on Thailand's government policies aimed at transforming the country into a regional EV manufacturing hub. These policies include tax incentives and subsidies to stimulate production and consumption of electric vehicles, which have already attracted significant investments from various manufacturers.

Strategic Importance

The factory's establishment aligns with Thailand's ambitious goal to convert 30% of its automotive production to electric vehicles by 2030. The Thai government has implemented a series of measures to support this transition, including the recent EV 3.5 package, which provides financial incentives for the purchase of electric cars while phasing out support for hybrid vehicles.

Changan's decision to build the factory in Thailand is also influenced by the country's strategic location within the Eastern Economic Corridor (EEC), which offers advanced infrastructure and logistical advantages for manufacturing and exporting vehicles across Southeast Asia and beyond.

Local Partnerships and Economic Impact

In addition to the factory, Changan plans to collaborate with local suppliers to increase the localization of parts, aiming for over 60% of components to be sourced domestically. This initiative is expected to bolster Thailand's automotive supply chain, creating jobs and enhancing the local economy.

The factory's construction is currently reported to be about 80% complete, with operations expected to commence as scheduled in early 2025. This development not only marks Changan's first manufacturing plant outside of China but also highlights the growing influence of Chinese automotive brands in Thailand, which accounted for nearly 80% of the country's EV market share in 2023.

Changan's new factory in Thailand is poised to play a crucial role in the country's transition to electric mobility, contributing to both local economic growth and the broader goal of establishing Thailand as a key player in the global EV market. As the automotive landscape evolves, Changan's investment reflects a significant commitment to sustainable transportation solutions in Southeast Asia.