Great Wall Motor, a Chinese automaker, is in the final stages of planning a substantial investment of up to $30 million to establish a battery pack assembly plant in Thailand. This move comes as the company aims to start production of a compact electric car in the country next year. In addition, Great Wall Motor is considering the establishment of a research and development center in Thailand, with a focus on battery-powered pickup trucks. Narong Sritalayon, the managing director of Great Wall Motor Thailand, shared these details in an interview.
The company already operates 10 similar development hubs globally, dedicated to various technologies. The decision to invest in Thailand, which aims to become a regional hub for electric vehicle (EV) production, is contingent on potential government subsidies, according to Narong.
Despite the significant investments made by China’s Great Wall and BYD in Thailand, Japanese automakers like Toyota and Isuzu currently dominate the domestic auto market in the country. Pickup trucks accounted for over half of the total sales in Thailand last year. Narong expressed his belief that there is much to be learned from Thailand’s unique pickup truck market.
Thailand, ranked as the world’s tenth-largest auto manufacturing economy, has set ambitious goals to convert approximately 30% of its annual production of 2.5 million vehicles into EVs by 2030, as outlined in a government plan. This transition will be facilitated by tax cuts and subsidies.
Great Wall Motor introduced its Ora Good Cat compact EV to the Thai market in late 2021, and it quickly became the best-selling EV in the country. The starting price for the cheapest variant, after a government subsidy of 230,500 baht, is 828,500 Thai baht ($24,475) according to the information listed on Great Wall’s website.
In 2020, Great Wall entered Thailand by acquiring a former General Motors Co plant, which currently produces two Haval hybrid vehicles for sale in the country. The company plans to commence production of the Ora Good Cat in Thailand next year and intends to source more components locally, including battery packs, to comply with the government’s incentive scheme for car manufacturers, as revealed by Narong.
The establishment of a pack assembly facility may require an investment ranging from 500 million to 1 billion Thai baht. The precise scale of the facility will be determined once the finalized plan is expected to be completed within the next six months, according to Narong.
Great Wall’s subsidiary, SVOLT Energy Technology, which has been expanding its presence in European markets, will initially produce battery assembly packs in Thailand. However, the facility has the potential to be upgraded for battery cell production with additional investment, based on demand and support from the Thai government.
Narong stated that Great Wall may also consider becoming a contract manufacturer of batteries for other automakers, thereby increasing the battery plant’s capacity. Currently, the Ora Good Cat 500 Ultra variant imported into Thailand is equipped with a 63.1 kilowatt hour battery pack supplied by China’s CATL, the world’s leading battery supplier with a 37% market share. However, Great Wall has no immediate plans to procure batteries from CATL for its upcoming local production.
Thailand is currently engaged in discussions with CATL and other battery manufacturers to establish production facilities in Southeast Asia’s second-largest economy. These initiatives aim to strengthen the country’s position in the growing electric vehicle market.
