China’s GAC AION New Energy Automobile, the fourth-largest electric vehicle (EV) manufacturer, will open a new manufacturing facility in the Eastern Economic Corridor area of Rayong province on July 17.
Key Takeaways
- Chinese company GAC AION New Energy will open a new EV plant in Rayong on July 17.
- The new plant has a valuation of 2.3 billion baht and a production capacity of 50,000 automobiles per year.
- Sources confirm that it will be the company’s first overseas plant to produce right-hand drive vehicles.
China’s GAC AION New Energy Automobile will open a new electric vehicle (EV) manufacturing facility in Rayong province, Thailand, with production set to begin in November. The 2.3 billion baht facility will have the capacity to produce 50,000 units per year.
This move strengthens Thailand’s potential as a hub for EV manufacturing in the region, in line with government investment policy. The government aims to provide balanced support for both EV and internal combustion engine (ICE) vehicle manufacturers, recognizing the importance of both sectors to the country’s economy. Measures are being explored to help ICE manufacturers cope with declining sales and changes in the auto industry.
Sources confirm that it will be the company’s first overseas plant to produce right-hand drive vehicles and the first model produced here will be the Aion Y Plus.
GAC AION announced its investment plan in Thailand in November last year and started building its Rayong factory in January. The company is confident that the new factory will contribute to Thailand’s goal of selling 1 million EVs in 2025. Additionally, GAC AION plans to establish 34 sales outlets in Thailand and is also working on setting up a new factory in Indonesia as part of its Southeast Asia expansion plan.
The EV industry development in Thailand
Thailand’s journey towards EV vehicles has been marked by both progress and challenges. The nation has set ambitious targets to become a regional leader in electric vehicle (EV) production and adoption, aiming for a significant increase in EVs on the road by 2025.
The Thai government has recognized the importance of the EV market and has implemented various incentives to promote EV adoption. These include subsidies ranging from 5,000 to 100,000 baht for imported electric cars and motorcycles, as part of the second-phase EV incentive package, EV3.5, covering 2024-27.
Additionally, the Board of Investment (BOI) offers extensive investment incentives for almost every segment of the electric vehicle market, including exemptions of corporate income for up to 8 years.
Despite these efforts, the development of the EV market in Thailand faces several hurdles. One of the most significant challenges is the lack of comprehensive EV policy and regulatory frameworks, which can create uncertainty for investors and consumers.
Nevertheless, there are opportunities for growth in the Thai EV market. The demand for sustainable transportation is growing, and the government’s incentives are expected to stimulate further investment in the industry.