The Thai Board of Investment (BoI) officially announced that Chery will establish a factory domestically for both domestic consumption and export. Production will begin in 2025 and it is expected that the factory will roll out 50,000 electric and hybrid vehicles that year, before output reaches 80,000 units per year in 2028.
This was announced by BoI secretary general Narit Therdsteerasukdi, who also said that Wuhu-based Chery will be the eighth Chinese automaker to set up a manufacturing plant in Thailand, joining the others. names like BYD, Great Wall Motor and Changan, among many others.
Based on ReutersThe ASEAN auto hub’s electric vehicle subsidies and tax incentives have attracted a wave of investment from China, where automakers have pledged investments worth more than 1.44 billion USD. Thailand aims to convert about one-third of annual production (2.5 million vehicles) to electric vehicles by 2030.
Last month, it was reported that Omoda & Jaecoo Thailand, a subsidiary of Chery, was plans to build a new EV factory in Rayong, Thailand. Based on Bangkok Post Office, production is expected to begin in 2025 and the factory will initially produce cars for the domestic and ASEAN markets. Chery plans to turn Rayong into a global export base, supplying Oceania and the Middle East.
“We plan to divide our production into two phases. In the first phase, starting in 2025, annual production capacity will reach 50,000 units. This number will increase to 80,000 units per year by 2028,” said Qi Jie, deputy managing director for South Asia at Chery International.
“Our BEVs will account for 70% of total automobile production, with the remaining 30% falling under the PHEV category,” Qi said, adding that he believes Thailand has great potential to develop the electric vehicle industry thanks to government’s EV3.5 plan. EV3.5 is Thailand’s electric vehicle incentive program that includes subsidies, import tax reductions and special consumption taxes to promote electric vehicle production and purchases from 2024 to 2027.
Currently, O&J’s cars will be imported complete units from China and the sales target for Omoda C5 EV (Chery Omoda E5 in Malaysia) and Jaecoo 7 hybrid plug-in (Jaecoo J7 is about to launch in Malaysia, but a pure ICE model) is 6,000 units this year. The company plans to establish 35 showrooms in the Land of Smiles, including 20 showrooms located in the capital 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. If demand increases, could Chery Malaysia source some models from across the border to expand its reach?
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