Chinese EV makers pour money into Thailand to secure foothold in its ‘trailblazing’ car-manufacturing industry
- China’s Great Wall Motor and BYD Co. already have factories in the Southeast Asian nation, where costs pressures are expected to spur wage increases
- Still, Chongqing Changan Automobile, GAC Aion and Hozon New Energy Automobile now also plan to open plants in the region’s top car-manufacturing hub
Prospects are backed by recent investment incentives in the kingdom for Chinese carmakers, and investments are pouring in, the chamber’s Chairman Narongsak Putthapornmongkol said on Sunday.
Chongqing Changan Automobile and GAC Aion have also announced plans to invest a total of 16.2 billion baht (US$470 million) in EV production facilities in the country. Great Wall Motor and BYD Co. have already established production plants in eastern Rayong province.
“EV is the most trailblazing industry right now as seen through investments from MG, Great Wall Motor and BYD,” Narongsak said.
The chamber hosted the 16th World Chinese Entrepreneurs Conference in Bangkok from Saturday to Monday, with about 4,000 entrepreneurs from 50 countries in attendance. Li Chuyuan, chairman of Guangzhou Pharmaceutical Holdings, and Hui Yuan, chairman of Xiao-I Corporation were among the prominent Chinese businessmen taking part.
Chinese EV start-up Hozon ramps up exports amid rising popularity of Neta SUV
Chinese firms sought to invest 25 billion baht during the period, up 87 per cent from a year ago, in industries such as battery production, electronics, petrochemicals and solar cell, data showed.
WHA Corp., Thailand’s largest industrial-estate developer, expects a pickup in Chinese investors with demand coming from companies setting up units to manufacture EVs, vehicle parts and electronics, according to Chief Executive Officer Jareeporn Jarukornsakul.
Daily minimum wages should be raised because of higher costs of living, but the increase shouldn’t exceed comparable salaries in neighbouring countries considered as Thailand’s competitors, Narongsak said.