Chinese electric vehicle (EV) maker GAC AION, a subsidiary of GAC Group, on Wednesday opened its first factory in Thailand, a key regional car export and assembly hub and fast-growing EV market.
“We will support Thailand's EV production and promote Thailand as an EV industry centre in Southeast Asia,” Zeng Qinghong, GAC Group chair said at the factory's inauguration at an industrial estate in Rayong province, about 180km east of Bangkok.
Thailand has for decades been a regional car production hub, dominated by Japanese producers such as Toyota and Isuzu.
But a wave of Chinese EV makers is making significant inroads into the market with investments of more than $1.44bn R26.03bn), challenging the Japanese companies while Thai consumers have also been quickly adopting EVs thanks to government subsidies and tax incentives.
The government aims for 30% of its 2.5-million cars produced annually to be EVs by 2030.
GAC AION's 2.3bn baht (R1.26bn) facility will be able to produce 50,000 vehicles a year, said Pimphattra Wichaikul, Thailand's minister of industry, at the opening.
“We are using a strategy to produce quickly in a small amount using AI to reduce waste and minimise cost,” Ma Haiyang, MD GAC AION Southeast Asia said.
The new factory comes days after rival Chinese EV maker BYD Motor opened a factory in Thailand, it's first in Southeast Asia.
The rapid expansion of Chinese EV makers in Thailand has affected Japanese car producers. Suzuki last month announced it would shutter a Thai factory that produced 60,000 cars a year.
Honda, Japan's second largest carmaker, last week said it would consolidate its two factories in Thailand into a single facility.
Chinese EV maker GAC AION opens factory in Thailand
Image: Zhe Ji/Getty Images)
Chinese electric vehicle (EV) maker GAC AION, a subsidiary of GAC Group, on Wednesday opened its first factory in Thailand, a key regional car export and assembly hub and fast-growing EV market.
“We will support Thailand's EV production and promote Thailand as an EV industry centre in Southeast Asia,” Zeng Qinghong, GAC Group chair said at the factory's inauguration at an industrial estate in Rayong province, about 180km east of Bangkok.
Thailand has for decades been a regional car production hub, dominated by Japanese producers such as Toyota and Isuzu.
But a wave of Chinese EV makers is making significant inroads into the market with investments of more than $1.44bn R26.03bn), challenging the Japanese companies while Thai consumers have also been quickly adopting EVs thanks to government subsidies and tax incentives.
The government aims for 30% of its 2.5-million cars produced annually to be EVs by 2030.
GAC AION's 2.3bn baht (R1.26bn) facility will be able to produce 50,000 vehicles a year, said Pimphattra Wichaikul, Thailand's minister of industry, at the opening.
“We are using a strategy to produce quickly in a small amount using AI to reduce waste and minimise cost,” Ma Haiyang, MD GAC AION Southeast Asia said.
The new factory comes days after rival Chinese EV maker BYD Motor opened a factory in Thailand, it's first in Southeast Asia.
The rapid expansion of Chinese EV makers in Thailand has affected Japanese car producers. Suzuki last month announced it would shutter a Thai factory that produced 60,000 cars a year.
Honda, Japan's second largest carmaker, last week said it would consolidate its two factories in Thailand into a single facility.
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