GAC to invest 6bn baht in Thai EV and battery factories

Guangzhou Automobile Corporation (GAC), China’s second-largest electric vehicle (EV) seller, is set to invest 6 billion baht in the construction of EV and battery factories in Thailand over the next three to five years. The move will transform the country into a key production and export base for the firm.

Ocean Ma, who oversees the company’s subsidiaries, Aion Automobile Manufacturing and Aion Automobile Sales (Thailand), stated that the firm is currently determining the factories’ location and production capacity. The aim is to cater to both domestic and overseas markets.

This move aligns with the Thai government’s ambition of transforming the country into a regional hub for EVs. The National EV Policy Committee declared in 2021 its intention to make half of the locally-made vehicles EVs by 2030.

Aion, in keeping with the environmental policies of its Guangzhou-based parent company and the worldwide drive against global warming, is looking to construct eco-friendly production facilities in Thailand. This will help to minimise carbon dioxide emissions from manufacturing processes.

Thailand is the first overseas destination GAC has invested in, said Ma, suggesting the country’s strategic importance for the firm. The aim, he said, is to make Aion one of the top three EV brands in Thailand. He observed that the region has considerable EV growth potential, particularly in Thailand.

GAC’s plans include the official launch of the Aion Y Plus EV this September. Following this, the company intends to roll out three new models annually. GAC currently boasts a total of six EV models.

In terms of sales volume, BYD leads the Chinese market, followed by GAC and Tesla. GAC sold 250,000 units in China in the first seven months of 2023, marking a 120% year-on-year growth.

Apichat Leenutaphong, the founder and CEO of Sharich Holding Co, which is a dealer for Aion, stated that the firm is planning to invest in 12 to 15 GAC showrooms. Aion has already greenlit the construction of four showrooms. Sharich Holding is set to spend between 15 and 40 million baht on each showroom’s development, said Apichat, reports Bangkok Post.

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