Chinese automotive firm Hozon New Energy will work with Thai automotive firm Bangchan General Assembly to produce electric vehicles (EVs) in Thailand, according to Thai government spokesperson Tipanan Sirichana.
The two firms have agreed to begin producing Hozon's NETA V model in the country in 2024, the spokesperson said, although she did not disclose output capacity and other details. She welcomed Hozon's move to select Thailand as the manufacturing centre for its right-hand drive EVs, as it reflects the efficacy of the country's investment promotion strategy.
The country seems to have emerged, slowly but surely, as a key EV production hub in Asia, with a number of Chinese investments starting to flow into the country. Chinese major auto manufacturer Changan Automobile last month said it is investing 9.8bn baht ($285mn) in Thailand to set up an EV production factory.
Thailand's Board of Investment said at least two more EV projects are likely to be filed for investment promotion in the first half of 2023. Changan is planning to submit its applications for promotion by May, while fellow Chinese EV manufacturer GAC Aion will invest Bt6.4bn to produce EVs in Thailand.
Thailand previously approved 26 EV investment projects from 17 companies for investment promotion with a combined value of Bt80.2bn, excluding the cost of land and revolving financing. The projects include seven hybrid projects, eight plug-in hybrid EV projects, 15 battery EV projects and two electric bus projects.
Among battery EV manufacturers are China's BYD and Great Wall Motor, Japanese manufacturers FOMM, Honda and Mazda, Germany's Mercedes-Benz and UK-based MG.
Thailand last year pushed out a plethora of tax incentives to encourage domestic EV production, as it aims for EVs to reach 30pc of its automotive output by 2030. It plans to implement additional EV support measures, according to Thailand's deputy secretary general to the prime minister Anucha Burapachaisri, with a target to produce 1.05mn EVs by 2026.
