GAC AION, China’s fourth-largest EV manufacturer, will open a 2.3 billion baht plant in Rayong, Thailand, on July 17, with a production capacity of 50,000 right-hand drive vehicles yearly. This supports Thailand’s goal of producing 1 million EVs by 2025 and solidifies its potential as an EV production hub. Despite challenges in policy frameworks, the Thai government’s incentives have stimulated EV industry growth.
GAC AION’s New Manufacturing Facility
China’s GAC AION New Energy Automobile, the fourth-largest EV manufacturer, will inaugurate a new plant in Rayong, Thailand, on July 17. Valued at 2.3 billion baht, this facility can produce 50,000 units per year. Notably, it will be the company’s first overseas plant to produce right-hand drive vehicles, starting with the Aion Y Plus model. Production begins in November and bolsters Thailand as a regional EV manufacturing hub.
The EV Market in Thailand
Thailand aims to become a regional leader in EV production with government support, including subsidies and investment incentives. The government’s EV3.5 package offers subsidies for imported electric cars and motorcycles. However, challenges like the lack of comprehensive EV policies persist. Despite this, the growing demand for sustainable transportation presents significant opportunities. GAC AION plans to establish 34 sales outlets in Thailand and expand further into Southeast Asia, with a new factory in Indonesia.
In a significant development for the electric vehicle (EV) industry, China’s GAC AION has announced plans to establish a manufacturing plant in Rayong, Thailand. This move is part of the company’s broader strategy to expand its global footprint and tap into the growing demand for EVs in Southeast Asia.
The new plant in Rayong will be GAC AION’s first overseas production facility. It is expected to have an annual production capacity of 100,000 units, with the potential to increase based on market demand. The facility will be equipped with advanced manufacturing technologies to ensure the production of high-quality EVs.
The choice of Rayong as the location for the new plant is strategic. Thailand has been actively promoting its EV industry, offering various incentives to attract foreign investors. Moreover, Rayong is home to the Eastern Economic Corridor (EEC), a special economic zone that provides numerous benefits, including tax breaks and infrastructure support.
The establishment of the new plant will not only boost local employment but also contribute to the development of the EV ecosystem in Thailand. GAC AION plans to collaborate with local suppliers and partners to create a robust supply chain. This will further strengthen Thailand’s position as a regional hub for EV manufacturing.
Furthermore, the new plant will play a crucial role in GAC AION’s mission to accelerate the adoption of EVs. The company is committed to delivering innovative and sustainable mobility solutions. With the new facility, GAC AION will be able to provide its EVs to more customers, helping to reduce carbon emissions and contribute to a greener future.
GAC AION’s entry into the Thai market is also expected to intensify competition in the EV segment. This could lead to more options and better prices for consumers, ultimately driving the growth of the EV market in the region.
In conclusion, GAC AION’s decision to open an EV plant in Rayong signifies a significant step forward in the company’s global expansion plans. It also underscores Thailand’s growing importance as a hub for EV manufacturing. The move is set to bring numerous economic and environmental benefits, further propelling the growth of the EV industry in Southeast Asia.
