Omoda & Jaecoo Global Corporation, a branch of China’s government-run vehicle manufacturer Chery International, plans to seek Board of Investment (BoI) benefits to establish an electric vehicle (EV) production facility in Thailand.
The firm intends to reveal financial and operational strategies in a few months, mentioned Qi Jie, the director for Thailand at Omoda & Jaecoo International. Chery is among the top 10 vehicle producers in China.
“The company will launch two EV brands, Omoda and Jaecoo, in Thailand because it expects local customers will respond well to these brands,” Mr Jie mentioned.
The investment strategy of Chery in Thailand is divided into three stages, with the initial one spanning from 2024 to 2025, featuring an EV production volume of nearly 18,000 units annually.
The company is scheduled to hold discussions this week with Arun Plus Co, a subsidiary of the national oil and gas titan, PTT Plc.
The agenda is to strategize the engagement of Arun Plus for the manufacturing of EVs for Omoda & Jaecoo in the initial phase of their business strategy, prior to establishing their independent production facility in the following stage.
In the subsequent period from 2026 to 2027, he mentioned that the firm is keen to boost production volumes to roughly 50,000 units annually, with 45,000 designated for international markets, and the remaining for the local market.
During the final stage between 2028 to2030, the production capabilities of Omoda & Jaecoo will be enlarged to exceed 100,000 units annually, with 60,000 designated for overseas markets, Mr Jie further revealed.
He indicated that discussions are underway with Thai collaborators regarding a sustained partnership in the EV vehicle production sector.
“The company is discussing with Thai companies investment in an EV manufacturing plant and its location,” said Mr Jie.
Thailand stands as the third country in Southeast Asia chosen for investment by Chery, succeeding Indonesia and Malaysia.
The forthcoming Thai production facility will focus on manufacturing EVs exclusively for the local and international markets, he articulated.
The goal is to designate Thailand as the hub for EV export production, while Indonesia and Malaysia focus on creating products with internal combustion engines, Mr Jie mentioned.
Chery is anticipating the endorsement of Thailand’s new government and the National EV Policy Committee for the country’s “EV 3.5” initiative, which refers to new measures for EV encouragement, as the present 3.0 initiative is set to expire in December this year.
Should the new government delays the endorsement of this initiative, the company might defer its investment in Thailand, given that the “EV 3.5” scheme is poised to bolster EV manufacturers and amplify the demand for EVs in the country, noted Mr. Jie.
“But we have confirmed that we will invest in Thailand,” he asserted.
The company plans to construct approximately 30 showrooms while initiating support after-sales services for the Thai clientele.
Omoda & Jaecoo anticipate establishing about 15-20 dealerships within the nation.