China's Hozon New Energy Automobile has announced plans to produce electric vehicles in Thailand, targeting the Southeast Asian market. In doing so, the company follows other manufacturers building facilities in this important car production hub in the region.
Thai government spokesman Tipanan Sirichana said in a statement that Hozon reached an agreement this week with Bangchan of Thailand. Production of the NETA V model is expected to start in 2024.
Tipanan indicated that the electric vehicle manufacturer launched its NETA V model in the Thai market last year and plans to launch its NETA U and NETA S models in the near future.
Other Chinese manufacturers of electric vehicles, such as BYD, have also invested in Thai factories. This is due to growing demand from domestic consumers, who can now choose from brands such as Great Wall Motors and Tesla.
Last month, a Thai official reported that China's Changan Auto plans to invest $285 million in a facility in Thailand.
Thailand, which is the fourth largest assembly and export hub for automakers such as Toyota and Honda, aspires to play a key role in the global electric vehicle supply chain outside of China. The country encourages the adoption and production of electric vehicles through tax cuts and subsidies. It aims for at least 2030% of domestic car production to consist of electric vehicles by 30.
Source: NNT- National News Bureau of Thailand