The Thailand Board of Investment has issued an investment certificate to Changan, which will invest around $240 million in a NEV production plant in Thailand.

(Image credit: CnEVPost)

Chinese auto giant Changan Automobile has signed a deal with Thai authorities to advance its plans to build a plant in the Southeast Asian country.

Changan reached the agreement with the Thailand Board of Investment (BOI) at the third Belt and Road Forum for International Cooperation event in Beijing on October 17, a company press release said yesterday.

Changan plans to invest 8.8 billion baht ($240 million) in Thailand to build a new energy vehicle (NEV) production plant with a design capacity of up to 100,000 units in the first phase, according to the release.

The Thailand BOI secretary general Narit Therdsteerasukdi presented Changan chairman Zhu Huarong with an investment certificate for the carmaker's production site project in Thailand, the release said.

(Image credit: Changan)

Changan established its operating entity in Thailand on August 23, and on August 24, the company announced plans to invest 8.8 billion baht to build a NEV production base in the country.

The first phase of the production base will have an annual capacity of 100,000 vehicles, and the second phase will increase the annual capacity to 200,000 vehicles, Changan said at the time.

NEVs produced at the facility will not only be sold in Thailand, but also exported to other markets including Australia, New Zealand, Britain and South Africa, Changan said in August.

Changan plans to invest more than $10 billion in overseas markets by 2030, with annual overseas sales of more than 1.2 million vehicles and more than 10,000 employees in overseas operations, the company said in April.

As of June, Changan had built more than 400 automobile sales and service outlets in more than 60 countries along the Belt and Road, including Saudi Arabia and Chile, with nearly 900,000 loyal customers, the company said yesterday.

In 2022, 90 percent of Changan's car exports were supplied to countries along the Belt and Road, with an output value of more than 12 billion yuan, it said.

Changan is the latest Chinese automaker to target the Thai market, with its local peers including (OTCMKTS: BYDDY) and building plants in the Southeast Asian nation to bet on the fast-growing EV market.

Thailand is Southeast Asia's largest auto maker and exporter and the top EV market, and the local government is pushing the country to become an ASEAN EV production hub with policies including tax breaks, consumer subsidies and investment support.

(1 $= 36.4400 baht)

Changan's new EV brand, Qiyuan, officially launched with goal of 1.5 million annual sales by 2030