Changan Automobile has reiterated its plans to have its upcoming assembly plant in Thailand become its major overseas manufacturing base, providing for all its right-hand drive vehicles it will build for the global market, The Nation reports. The factory, which is located in the eastern economic corridor special zone in Rayong, is already 80% ready and is expected to be completed in early 2025.
Production at the plant, which will produce an assortment of battery EVs, plug-in hynrid and range extended electric vehicle models, is slated to begin in March next year. Initial build capacity is 100,000 units in the first year, but this will be increased to 200,000 units by 2026.
As indicated previously by Changan Auto Southeast Asia MD Shen Xinghua, the Rayong plant – which will employ around 300 locals to make up 70% of its total workforce – will not only build right-hand drive models for the domestic and other RHD markets such as Indonesia, Australia, New Zealand and the UK, but will also assemble left-hand drive versions for overseas markets.
Ahead of the facility’s opening, the Chinese automaker is making major preparations for the localisation of parts and components, something it says is integral to its business plan. Shen said Changan planned to use parts from over 300 local suppliers, both Thai and Chinese-owned companies, to boost the local content ratio of its EVs to 50% in the first year and then to 80% by 2026.
“Producing EVs in Thailand still has a 30% to 80% higher cost than in China. Therefore, we will prioritise developing a supply chain network with domestic parts makers to support our high volume manufacturing, which will help bring the cost down,” he said.
Shen added that the company is also building a 3,000-square-metre warehouse capable of storing over 40,000 parts across some 2,000 types, which it says will enable 24-hour delivery of 95% of parts to Changan service centres nationwide.
It also plans to open 60 showrooms/service centres in Thailand by the end of this year, and increase this to 100 next year. Having already introduced its all-electric Deepal S07 SUV, L07 sedan and two-door Lumin city EV earlier this year at the Bangkok International Motor Show (BIMS), the company is set to launch the Avatr 11 in Thailand next month.
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