Changan Agrees to Construct Electric Vehicle (NEV) Plant in Thailand

Chinese automotive giant Changan has made significant strides toward establishing an electric vehicle (NEV) production plant in Thailand. The Thailand Board of Investment (BOI) recently granted an investment certificate to Changan for its ambitious $240 million NEV production facility.

This milestone came after Changan solidified an agreement with the Thailand BOI during the third Belt and Road Forum for International Cooperation event in Beijing on October 17. According to a company press release, Changan intends to invest 8.8 billion baht in Thailand, marking the first phase of a NEV production plant designed to produce up to 100,000 units.

Narit Therdsteerasukdi, Secretary-General of the Thailand BOI, presented Changan’s Chairman, Zhu Huarong, with the investment certificate, officially endorsing the carmaker’s production site project in Thailand.

Changan established its operational entity in Thailand on August 23, revealing its intention to invest 8.8 billion baht in the construction of a NEV production base in the country the very next day. The first phase of this production base is set to achieve an annual production capacity of 100,000 vehicles, with the second phase slated to double that capacity to 200,000 vehicles.

Notably, the NEVs manufactured at this facility will not be limited to the Thai market. Changan intends to export them to other markets, including Australia, New Zealand, Britain, and South Africa, highlighting the company’s global expansion plans.

Changan has a comprehensive overseas strategy, aiming to invest more than $10 billion in international markets by 2030. This strategy also encompasses achieving annual overseas sales of more than 1.2 million vehicles and employing over 10,000 individuals in overseas operations.

As of June, Changan had already established over 400 automobile sales and service outlets in more than 60 countries along the Belt and Road, fostering nearly 900,000 loyal customers. In 2022, Changan exported 90 percent of its vehicles to countries along the Belt and Road, resulting in an output value exceeding 12 billion yuan.

Changan joins other Chinese automakers, such as BYD and Neta, who have also set their sights on the burgeoning Thai EV market. Thailand, Southeast Asia’s primary automobile manufacturer and exporter, is emerging as a major player in the EV sector, backed by government incentives like tax breaks, consumer subsidies, and investment support, with the goal of becoming an ASEAN EV production hub.