Investment/Chery production base

Chatrudee Theparat

The Board of Investment (BoI) approved China’s Chery, a major global EV manufacturers, to establish a production base of electrical vehicles in Thailand.

It is the latest move of EV newcomer that the BoI can attract the company to invest in Thailand after its two-year negotiation. The company plans to launch the first generation of electric cars in the middle of this year in order to conduct marketing testing.

The company establishes a production base to manufacture EVs with right-hand drive cars to supply domestic and export market next year.

Narit Therdsteerasukdi, BoI's secretary general, said it remarked a BoI’s effort to attract the Chery Automobile to invest in Thailand.

Chery Automobile Co. Ltd., trading as Chery, is a Chinese state-owned automobile manufacturer headquartered in Wuhu, Anhui, China. Founded in 1997, it is currently the first ranking of export with 1.88 million vehicles in 2023.

“The company decided to choose Thailand as the production base for right-hand drive EV cars in order to sell in domestic and export in Asean Australia and the Middle East,” Mr Narit said.

BoI approved privileges for the company on April 2. Cherry Automobile will be operated under “Omoda & Jaecoo (Thailand) which is brand for Chery to sell in international markets.

The company will establish a factory in Rayong province. The first phase, its manufacturing includes BEV and HEV with annual 50,000 units.

The second phase is planned in 2028 with an expansion to meet 80,000 units a year.

“The company will import the first generation-OMODA C5-EV which is cross over SUV to test marketing, followed by premium off-road JAECOO 6 EV, JAECOO 7 PHEV and JAECOO 8 PHEV. The company planned to open 39 showrooms in nationwide.”

He said the investment of Chery is a remark of Thailand’s success of promoting EV manufacturing in Thailand.

Seven major China EV manufacturers have already established in Thailand including BYD, MG, Great Wall Motor, Changan Automobile, GAC Aion, NETA and Foton.

“Chery is the eight EV makers of right-hand drive cars which reflect to investors' confidence in Thai government policy and potential of the country,” Mr Narit said.

BoI's office in China began to talk to Chery since 2021, later Mr Narit to visit executive of Chery in China. BoI proposed new measures of the Thai government with privileges to attract the company to submit application. The agency approved the application in early April.

Omoda & Jaecoo Co (Thailand)’s executives l, led by Chairman Qi Jie, met Mr Narit in order to consult for the next step of investment. The company also met Thai parts manufacturers via BoI cooperation.

Mr Qi said Thailand is the highest growth of EV cars in the region and he believes Thailand has great potential to develop an EV industry, thanks to the government's EV3.5 scheme. The government policy is conformed to sustainability development of the company.

“We commit to manufacture EV cars to meet lifestyle of Thai people. We also intended to sourcing supply from domestic parts,” Mr Qi said.

BoI has already approved total 26 projects from 19 companies of EV cars including BEV, PHEV and HEV valued 8 billion baht.