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(Text/Zhang Jiadong)

July 17,GAC GroupSubsidiariesGAC AionThe factory in Rayong, Thailand has been completed. The factory is located in the Rayong Industrial Zone, about 180 kilometers east of Bangkok.

This is also theBYDLater this month, a second Chinese car company opened a factory in Thailand.

Thailand's Industry Minister Pimphattra Wichaikul said at the opening ceremony that GAC AION's 2.3 billion baht (460 million yuan) factory will be able to produce 50,000 vehicles a year.

It is reported that the factory adheres to the concept of "small scale, fast output, and rolling development" and supports the second generationAION V、AION Y Plus and other GAC Aion models are produced on the same line.

“The strategy we adopted is to use artificial intelligence to produce in small quantities quickly ... to reduce waste and lower costs,” said Ma Haiyang, general manager of GAC AION Southeast Asia.

Reuters commented in a related article that for decades, Thailand has been a regional automobile production center, mainlyToyotaAuto and Isuzu Motors are the dominant Japanese manufacturers.

But in recent years, with government subsidies and tax incentives, Thai consumers are also rapidly accepting electric vehicles. According to the Thai government's plan, its goal is to have 30% of its 2.5 million cars produced annually be electric vehicles by 2030.

Currently, Chinese electric vehicle manufacturers are making a big push into the Thai market, investing more than US$1.44 billion (about RMB 10.45 billion).

According to the South China Morning Post, Chinese electric vehicles accounted for 47% of the market share in Southeast Asia in 2021, but this proportion has now risen to 74%, a record high.

andGreat WallUnlike other manufacturers, Aion only entered the Thai market in 2023 and started cooperation with local dealers, but its local influence and sales growth rate are at the forefront. It currently has more than 40 stores in Thailand.

According to statistics from Thai automotive media Autolife Thailand, Aion sold nearly 2,200 vehicles in Thailand from January to May 2024, accounting for 7% of Thailand's pure electric market.

However, compared with Japanese brands' overall car market share of more than 80% in Thailand, Chinese brands are still in the exploratory stage of launching new products in Thailand. Systematic overseas expansion and localization construction are compulsory courses for more Chinese car companies to enter the Thai and Southeast Asian markets in the future.

"We will support electric vehicle production in Thailand and plan to promote Thailand to become the electric vehicle industry center in Southeast Asia," said Zeng Qinghong, chairman of GAC Group, at the factory's inauguration ceremony.

In addition, in order to adapt to localized production, both BYD and Aion claimed that they would place their core industrial chain in Thailand for production. Previously, BYD told Observer.com that its battery factory had been completed next to the Thai factory.

At this event, Gu Huinan, general manager of GAC Aion, said, "Parts that can be produced in Thailand will be produced in Thailand first." It is reported that GAC Aion has already produced batteries and motors in Thailand.

This article is an exclusive article of Observer.com and may not be reproduced without authorization.