Chinese EV maker GAC AION opens factory in Thailand

Isuzu Motors

17/07/2024 06:49

BANGKOK, July 17 (Reuters) - Chinese electric vehicle
(EV) maker GAC AION, a subsidiary of GAC Group  601238.SS , on
Wednesday opened its first factory in Thailand, a key regional
auto export and assembly hub and fast-growing electric vehicle
market.
    "We will support Thailand's EV production and promote
Thailand as an EV industry centre in Southeast Asia," Zeng
Qinghong, GAC Group Chairman said at the factory's inauguration
at an industrial estate in Rayong province, about 180 km (112
miles) east of Bangkok. 
    Thailand has for decades been a regional auto production
hub, dominated by Japanese producers like Toyota Motor  7203.T 
and Isuzu Motor  7202.T . 
    But a wave of Chinese EV makers is making significant
inroads into the market with investments of over $1.44 billion,
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 2.3-billion-baht ($64.03 million) facility will
be able produce 50,000 units vehicles each 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, Managing Director GAC AION Southeast Asia said. 
    The new factory comes days after rival Chinese EV maker BYD
Motor  002594.SZ  opened a factory in Thailand, it's first in
Southeast Asia. 
    The rapid expansion of Chinese EV makers in Thailand has
impacted Japanese auto producers. Suzuki Motor  7269.T  last
month announced it would shutter a Thai factory that produced as
many as 60,000 cars a year. 
    Honda Motor  7267.T , Japan's second-largest auto maker,
last week said it would consolidate its two factories in
Thailand into a single facility. 
    
    ($1 = 35.9200 baht)

 (Reporting by Chayut Setboonsarng; Edited by Christian
Schmollinger)
 ((chayut.setboonsarng@tr.com; +66854849033;))