Investment/BoI

Chatrudee Theparat

The Board of Investment (BoI) has attracted seven Chinese car companies to show their plan to buy local parts, a move aimed at pushing Thai manufacturers to play a rising role in global supply chain.

Narit Therdsteerasukdi, BoI's secretary general, revealed at the international industrial parts event, “SUBCON Thailand 2024”, held between May 15-18, 2024, where BOI has organized special activities. “ BoI Symposium: EV Supply Chain”

Narit Therdsteerasukdi

At the event, BoI has found that seven car companies from China to show their interest in buying local parts. The activity is a bridge for Thai entrepreneurs to enter the global electric vehicle supply chain.

He said there are opportunities to enhance the growth of using domestic parts up to 90%. The event will support Thailand to become a hub in ASEAN and support the country to become a production base for export to the world market in the long term.

“The event is the first time in Thailand that seven leading car manufacturers from China's namely BYD, MG, Great Wall Motor, NETA, Changan, GAC Aion and Omoda & Jaecoo have come here to share their vision of developing the electric vehicle industry. They also showed their procurement plan from the domestic market."

Thailand is ready to assist Thai entrepreneurs to involve the global supply chain. There are more than 1,500 participants from domestic manufacturers to register to participate in the domestic parts purchasing program.

Currently, car manufacturers from China that manufactured EVs in Thailand, namely GWM, NETA and MG while BYD and GAC Aion, plan to start production in the 3-4 quarter this year. The other is Changan which will begin production at the beginning of the year 2025. The manufacturing will help drive a rising demand of domestic parts.

Their procurement plan from domestic parts will help enhance the opportunity to use domestic parts up to 100%, leading Thailand to become a production base for export in the future.

BoI has provided comprehensive benefits for electric vehicle manufacturing in every segment, as well as 17 important parts eligible for the highest privileges including battery and charging station.

During the past 2- 3 years, BoI promoted the EVs industry in Thailand with total investment of over 80 billion baht. There are 18 projects to manufacture electric vehicles with battery ( BEV) with approximate investment 40 billion baht. Total production capacity of electric cars 400,000 units

Ma Haiyang, general manager of International Business of GAC AION New Energy Automobile or GAC AION, said the company is committed to developing the production chain in Thailand and want to see Thailand to be the center of ASEAN with the production plant investment and distribution. The firm will cooperate with local parts manufacturers to develop high quality products.

Yu Bin Ke, general manager of BYD Auto (Thailand) Co, said BYD was the top-selling new energy vehicle manufacturer of the world in 2023. As of March, the company had sales worldwide of more than 7 million units.

Currently, the BYD factory is preparing to use more than 40% of domestic parts from manufacturers. The company is a plan to buy more every year. In the future, the company will upgrade production and domestic parts development under " made in Thailand".

Shen Shen Xinghua, chairman of the Changan Auto Sales ( Thailand ) Co, revealed that Changan has important goals in reducing carbon dioxide emissions. The company plans to invest US$10 billion to manufacture and produce newer energy vehicles 1.5 million cars.

The company wants Thailand is the hub of ASEAN both production and selling, including research and development worth approximately 10,000 million baht.

“It is expected that car production will begin in the first quarter of the year 2025 with production capacity of 100,000 units. Using local parts up to 60% and there is a chance to meet 90% from Thai government support measures.”