Chinese carmaker Changan breaks ground for 1st plant in Thailand

Participants attend a groundbreaking ceremony for Chinese automaker Changan's first car plant in Thailand in Rayong, Thailand, Nov. 8, 2023. (Xinhua/Wang Teng)

RAYONG, Thailand, Nov. 8 (Xinhua) -- China's leading automaker Changan held a groundbreaking ceremony on Wednesday for its first car plant in Thailand, marking a major step to expand its footprint in Southeast Asia.

The new manufacturing facility, spanning approximately 600 acres, is located in the Eastern Economic Corridor Special Zone in coastal Rayong province and will include painting, assembly, engine assembly, and battery assembly units as well as essential supporting facilities.

With the first phase set to commence in early 2025, the initial design anticipates the production of up to 100,000 vehicles per year.

Furthermore, Changan's total investment is projected to reach up to 20 billion Thai baht (about 563 million U.S. dollars) by the second phase, and the total capacity will reach 200,000 units per year which will cover the entire ASEAN (Association of Southeast Asian Nations) market as well as the global right-hand drive market.

Thailand has long been a major automobile production base in Southeast Asia due to its industrial chain and geographical advantages. Changan's investment in Thailand is in alignment with the Thai government's goal of converting 30 percent of vehicles manufactured in the Southeast Asian kingdom into electric vehicles (EVs) by 2030.

As Changan's first car plant in Thailand, the investment reflects Thailand's potential and readiness to become a regional and global EV production hub, said Narit Therdsteerasukdi, secretary general of Thailand Board of Investment.

With Thailand's rapid shift towards EV adoption, Changan is motivated to take a proactive role in driving the country's transition to a more environmentally sustainable automotive landscape, said Vice President of Changan Automobile Wang Hui.

He noted that Changan's entry into Thailand has not only offered a solid assurance for the carmaker's objective of positioning Thailand as a regional hub for EVs, but also played a significant role in promoting the deep integration of the new energy vehicle industries in China and Thailand.

In addition to Changan, China's carmakers such as Great Wall and BYD have built plants in Thailand and launched EVs. According to the Federation of Thai Industries, in the first half of this year, Chinese brands accounted for over 70 percent of Thailand's EV sales.