Changan, the Chinese car manufacturer, is investing 258 million euros in a new production plant for electric and hybrid cars and batteries in Thailand. This is a significant investment for Changan as it marks their first right-hand drive vehicle plant outside of China. The Thailand Board of Investment (BOI) confirms that the plant will have an initial production capacity of 100,000 vehicles for sale in Thailand and other ASEAN countries, Australia, New Zealand, England, and South Africa.
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While the number of countries in which the products from the new plant can be marketed is limited due to the right-hand drive feature, the potential market seems large enough to make a positive business case for the plant. Countries such as Japan, India, and southern Africa also have left-hand traffic but are not listed in the announcement.
Changan is currently Chinaās fourth-largest carmaker, with over two million vehicles sold in 2022, but is still primarily entrenched in the internal combustion world. The company has made little appearance in Europe so far. The investment in Thailand is a significant milestone in promoting the country as a major EV production base and demonstrates Changanās confidence in Thailandās infrastructure, market potential, proactive policy to promote a complete EV ecosystem, and comprehensive supply chain that is ready to support EV production, according to Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI).
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Several Chinese car manufacturers, including Hozon Autoās Neta and BYD, are investing in electric car production in Thailand. Horizon Plus, a joint venture between Taiwanese contract manufacturer Foxconn, Thai energy company PTT, and Aiways, is also building an electric car production facility in the country. The investments of these companies signify a positive outlook for Thailand as a major EV production base.