UOB supports GAC Aion to venture into Thai EV market

Editorial Staff

UOB supports GAC Aion to venture into Thai EV market

UOB and Guangzhou Auto Group (GAC) Aion have entered into a memorandum of Understanding (MOU) establishing a comprehensive business cooperation to support the Chinese car manufacturer as it ventures into Thai electric vehicle market.

Through the agreement, UOB China and UOB Thailand will provide financial support for the company’s business expansion, market development and investment in innovation.

The agreement builds on UOB China’s long-established partnership with GAC Aion, China’s third largest new energy vehicle automobile company in terms of domestic sales market in the first half of 2023. Under the MOU, Aion Automobile Sales (Thailand) will benefit from global credit management to meet operational needs and capital demand, cross-border transaction services and access to green financial solutions under UOB’s sustainable finance framework to support sustainable business activities.

Mr. Tan Choon Hin, president and CEO, UOB Thailand said “We would like to congratulate GAC Aion for the first important step of success in expanding its EV footprints in Thailand. The long-term partnership we established with them has granted us the privilege to serve as their main financial institution on their journey to expand overseas. As a leading regional bank with deep roots in Thailand, our extensive networks and understanding of the local market nuances has successfully supported GAC Aion’s entry to Thailand’s high-growth EV market.”

The MOU is signed in conjunction with GAC Aion launching its first overseas model – Aion Y Plus in Thailand. In 2022, GAC Aion set its international strategy and decided to firstly expand into ASEAN’s fast-growing markets with Thailand as the first stop.

UOB formed a business team including in-market relationship managers, Foreign Direct Investment advisory and China Desk service team to provide seamless support to the client across border. With the team’s support, GAC Aion set the subsidiary and funded its capital, completed overseas direct investment registration and shipped the first batch of Y Plus models to Thailand. UOB also provided cross-border payment solution that enables the client to collect payment from Thai distributors in Thai Baht, covert into in renminbi and transfer back to China.