China’s Hozon New Energy Automobile is the latest electric vehicle (EV) maker to choose Thailand as a production hub for the South-East Asian region. The Zhejiang-based manufacturer inked an agreement with local auto firm Bangchan General Assembly last week and will begin production of its Neta V crossover (which was just introduced in Malaysia) in the Kingdom from next year, Thai government spokesperson Tipanan Sirichana said via a statement.
According to news reports, Tipanan added that the company plans to start offering its all-electric Neta U and Neta S models in the near future. No timeline for their introduction was given, but it should likely be aligned with the planned deployment schedule that has been indicated for both models in Malaysia.
It was previously reported that the U SUV was due here by Q2 next year, while the S sedan was targeted for a Q1 2025 debut in Malaysia. The Neta models sold here in the future should be locally-assembled, given that GoAuto subsidiary Intro Synergy has said it, together with its partners, will invest around RM300 million to develop a sales and after-sales network as well as a manufacturing plant.
Other Chinese automakers such as BYD and Great Wall Motors have also invested in Thai plants as demand heats up among domestic consumers. Last month, it was reported that Changan Auto would be investing US$285 million (RM1.27 billion) to set up a production facility in Thailand.
Last year, Thailand became the first country in the region to offer cash subsidies for imported passenger EVs. Imported fully-electric models are also exempt from most import and excise duties until the end of 2023 – automakers wishing to continue benefiting from these subsidies will have to begin producing their cars locally starting from 2024.
GALLERY: Neta V EV crossover, Malaysian launch
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Congrats Thailand, Detroit of the East.
And after so many yrs Bolehland stil hav the dream to become auto hub, shiok sendiri.
Not happening soon considering there is many stupid regulations and have to take care not to destroy p1 and p2.
Also lots of sub-par quality cronies vendors / suppliers to feed here too.
Thailand, unlike malaysia, does not have a comprehensive tax agreement with China.
Importing parts direct from china to thailand will cost much more than, compared to, importing parts from china to malaysia.
I know of many cases of automotive components that thai entities pay malaysian entities to assemble chinese automotive components for export to thailand, as it is cheaper buying through malaysia rather than direct from china.
to be frank, hozon are better off assembling in malaysia and exporting to thailand rather than the other way round.
Congrats Thailand. Where is our formula man’s formula to bring more FDI to Malaysia…
Thai’s fuel prices are very high. It would be sensible for their people to buy EVs. Hence these companies setup their operations there due to the demands.
The cost of living in Thailand is really high food cars and house much more expensive than elsewhere in asia fuel super expensive