July 17th, 2024, GAC Aion, a subsidiary of the Guangzhou Automobile Group (GAC), has officially inaugurated its first electric vehicle (EV) assembly line outside China in Rayong, Thailand. This strategic move marks a significant milestone in GAC Aion's expansion plans and underscores Thailand's growing importance as a hub for electric vehicle manufacturing in Southeast Asia.

Factory Details

The new assembly plant is located in the Amata City Industrial Estate within Thailand's Eastern Economic Corridor (EEC) project area. Covering an area of 85,000 square meters, the facility represents an investment of approximately 2.3 billion baht (around $64 million). Initially, the plant will produce 20,000 vehicles per year, with plans to ramp up production to 70,000 vehicles annually to meet increasing market demand].

Strategic Significance

The establishment of this factory aligns with GAC Aion's broader strategy to expand its global footprint and enhance its competitive edge in the international market. The Rayong plant is set to become a key manufacturing and export hub for right-hand drive markets globally. This initiative also supports Thailand's ambition to become a regional center for EV production, a goal bolstered by government incentives and subsidies aimed at promoting the adoption of electric vehicles.

Technological Advancements

The Rayong facility is equipped with advanced technology, including AI-controlled quality management systems and comprehensive data integration across the production process. This ensures high efficiency, quality, and environmental sustainability. The plant's use of robots combined with AI technology aims to achieve defect-free production and real-time adaptability, mirroring the technological advancements seen in GAC Aion’s facilities in China.

Local and Global Impact

Currently, 45% of the components used in the assembly process are sourced locally, reflecting GAC Aion's commitment to integrating into the local supply chain and supporting the Thai economy. The factory's opening is expected to enhance GAC Aion's brand strength and distribution capabilities both locally and globally. It also positions the company to better compete with other major players in the EV market, such as Tesla and BYD.

Future Plans

GAC Aion has ambitious plans for its new Thai facility. The company aims to introduce the latest technologies and expand its product line to cater to diverse market needs. The first model to be produced at the Rayong plant is the Aion Y Plus, which has already been introduced to the Thai market. This move is part of GAC Aion's participation in Thailand's EV 3.0 initiative, which mandates a balance between local production and imports to promote the rapid adoption of electric vehicles.

The opening of GAC Aion's factory in Thailand is a significant step in the company's global expansion strategy. It not only strengthens GAC Aion's presence in Southeast Asia but also contributes to Thailand's goal of becoming a leading EV production hub. With advanced manufacturing technologies and a strong commitment to local integration, GAC Aion is well-positioned to drive the future of electric mobility in the region and beyond.