Thailand’s Board of Investment (BoI) has officially announced that Chery will be setting up a plant in the kingdom for both domestic consumption and exports. Production will begin in 2025 and it is forecasted that the plant will roll out 50,000 EVs and hybrids that year itself, before production reaches 80,000 units per annum by 2028.
This was announced by BoI secretary-general Narit Therdsteerasukdi, who also said that Wuhu-based Chery will be the eighth automaker from China to set up a manufacturing plant in Thailand, joining names such as BYD, Great Wall Motor and Changan, among others.
According to Reuters, the ASEAN automotive hub’s subsidies and tax incentives for EVs have attracted a wave of investment from China, which automakers have committed more than US$1.44 billion (RM6.88 billion) worth of investments. Thailand aims to convert about a third of its annual production of 2.5 million vehicles into EVs by 2030.
Last month, it was reported that Omoda & Jaecoo Thailand, a subsidiary of Chery, is planning a new EV factory in Rayong, Thailand. According to Bangkok Post, production is set to start in 2025, and the plant will initially produce cars for domestic and ASEAN markets. Chery has plans to make Rayong a global export base, supplying Oceania and the Middle East.
“We plan to divide our manufacturing into two phases. In the first phase, which starts in 2025, annual production capacity will stand at 50,000 units. The number will increase to 80,000 units a year in 2028,” said Qi Jie, vice-managing director for South Asia at Chery International.
“Our BEVs will make up 70% of total car production, with the remaining 30% belonging in the PHEV category,” Qi said, adding that he believes Thailand has great potential to develop an EV industry thanks to the government’s EV3.5 scheme. EV3.5 is Thailand’s EV incentive scheme that comprises subsidies and a reduction in import duties and excise tax to promote electric vehicle production and purchase from 2024 to 2027.
For now, O&J’s cars will be CBU imported from China and the sales target for the Omoda C5 EV (Chery Omoda E5 in Malaysia) and Jaecoo 7 plug-in hybrid (Jaecoo J7 is launching soon in Malaysia, but as a pure-ICE model) is 6,000 units this year. The company plans to set up 35 showrooms in the Land of Smiles, with 20 of those to be located in capital city Bangkok.
What does this mean for Malaysia? While Chery has CKD operations in our country, capacity is somewhat limited at Inokom in Kulim, Kedah, as the facility is shared with other brands. Should demand grow, might Chery Malaysia source some models from across the border to expand its range?
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last another FDI to Thailand… formula man???
1) Protect Proton 1st
2) Protect Petronas-petrol & lubricant 2nd
3) Protect all cronies vendors 3rd by not forcing them to adopt to changes with better quality and technology so can continue to sell at huge margins.
4) Continue the system 4th for another few decades because tak ada hal lah since 1983 Proton was established don’t worries.
Since sanusi bcum MB Kedah. Carmakers gone
Everything must protect the rich and powderful. Even if car companies want to open factories here, it will be regarded and taxed as foreign. That is why more and more youths end up delivering food.
Nothing much to do with protectionism really. The main reason is we lack of BRI connectivity to China making our supply chain a hassle for big factories.
With out transport infrastructure, Malaysia is only capable of selling things like goreng pisang and durian. Hard to make big manufacturing compared to Thailand
nah…all the mess started with P1 and P2
Thank you Tun Atok father of Thailand automotive industry
PMX bapak Thailand EV carmaking!
He makes a better Thai PM by pulling more FDI into Siam. You stupid msians voted for him hahahaha
Terima kasih bapa Proton.
Anwar menang Thailand senang
no wonder Siam is actively devaluation of Baht recently
Just heard today Ducati pun pindah kilang dan global distributor hub ke Thailand. BRI (belt and road initiative) is making Thailand super rich.
We really need to research why Thailand is so attractive for companies to build cars there…
Nothing to researh. The reason is BRI connectivity. Thailand is connected and we are not. Simple
Simple. Bcoz we have PH & PMX as gomen
Thank you NEP
Sabah and Sarawak should be given the option to opt out of national Car policy and adopt ASEAN free trade area for motor vehicles.They do not benefit at all from it.
We signed the agreement but did not honour it
. So cars made locally are subjected to tariffs we imposed on ASEAN made cars.
By opting out of NAP, Sarawakians can buy ASEAN made cars with tariffs similar to local ones and attract manufacturers to its state as it will not be freely exported to other ASEAN market.
Sabah and Sarawak should be given the option to opt out of supporting PMX when he is clearly failing the country. Once they have pulled their support lets see how he sink or swim.
ONLY malaysians MALAP not awake yet
Our automotive manufacturing industry is not attractive enough to gain investment from car makers. That’s a fact.
I wonder if tengku zafrul and his team is able to analyse the situation and understand why we car makers continue to shy away from Malaysia. Satisfied with just ckd operations?… I m afraid there are some fundamental factors we hv missed and continue unidentified
One small step for Malaysia, while one GIANT LEAP for Thailand. Sawadikap.