Change Automobile Prepares Thailand To Become A Global Production Center, Focuses On Electric Vehicles

Changan Deepal. (Photo: Changan)

JAKARTA - The automotive manufacturer from China, Changan Automobile, has further confirmed its plan to make Thailand its main manufacturing base abroad. The factory, which will soon be built in Rayong, is expected to be the production center for right-handed steering vehicles to be exported to various countries.

According to a report from The Nation, quoted from the Paultan website, Monday, September 2, the Changan plant in Rayong has reached 80 percent of the construction and is projected to be completed by early 2025.

Interestingly, this factory will be a production center for various environmentally friendly vehicle models, including Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), and Extended-Range Electric Vehicle (EREV).

Production is scheduled to begin in March 2025, with an initial target of 100,000 units of production capacity in the first year, which will be increased to 200,000 units by 2026.

Ahead of the opening of this assembly facility, Changan is also preparing strategic steps for the localization of spare parts and components. Shen Xinghua, President Director of Changan Auto Southeast Asia, revealed that the company plans to cooperate with more than 300 local suppliers, both from Thailand and China, to increase the local content of their electric vehicles to 50 percent in the first year and to 80 percent in 2026.

The production cost of electric vehicles in Thailand is still 20 to 80 percent higher than in China. Therefore, we prioritize the development of supply chain networks with local parts manufacturers to support our high-volume production, which will help reduce costs," Shen said.

Furthermore, Shen explained that Changan is also building a warehouse covering an area of 3,000 square meters, which can accommodate more than 40,000 parts of about 2,000 types. The warehouse will allow 95 percent delivery of spare parts within 24 hours to Changan service centers across Thailand.