GAC AION Opens New Rayong Plant to Boost Thailand’s EV Industry

China’s fourth-largest electric vehicle (EV) manufacturer, GAC AION New Energy Automobile, is set to transform Thailand's automotive industry with the launch of a state-of-the-art manufacturing facility in Rayong’s Eastern Economic Corridor (EEC) on July 17, 2024.

The new plant, which represents a significant investment of 2.3 billion baht, is expected to begin operations by November. With an impressive annual production capacity of 50,000 units, this facility underscores Thailand's ambition to become a regional leader in EV manufacturing.

Industry Minister Pimphattra Wichaikul highlighted the strategic importance of this development, stating, "The opening of a new EV manufacturing plant strengthens Thailand’s potential in becoming a manufacturing hub for electric vehicles in this region, in line with the government’s investment policy.”

The Thai government is taking a balanced approach in promoting both electric and internal combustion engine (ICE) vehicles, acknowledging their collective importance to the economy. Pimphattra noted, “ICE vehicle manufacturers are crucial to domestic part manufacturers and other supply chain providers, which comprise mostly SMEs. The ministry has been coordinating with the Japan External Trade Organisation (JETRO) and the Japanese Chamber of Commerce in Bangkok to find suitable measures to help ICE manufacturers cope with declining sales and changes in the auto industry.”

An insider revealed that the Rayong plant marks GAC AION’s first venture into overseas manufacturing for right-hand drive vehicles, with the inaugural model being the Aion Y Plus. This significant move follows GAC AION’s investment announcement in November last year and the commencement of construction in January.

GAC AION is confident that this new plant will propel Thailand towards its ambitious goal of selling 1 million EVs by 2025. The company also plans to establish 34 sales outlets across Thailand and is eyeing further expansion in Southeast Asia, with a new factory in Indonesia already in the pipeline, according to The Nation.

The introduction of this advanced facility is expected to create numerous jobs and stimulate the local economy, further solidifying Thailand’s position as a key player in the global EV market. The Rayong plant will not only boost production capabilities but also serve as a catalyst for technological advancements and innovation in the region.

The strategic location of the plant in the EEC, a region designated for economic development, provides numerous advantages. It offers access to modern infrastructure, including ports, highways, and railways, facilitating efficient logistics and distribution. This makes Rayong an ideal location for GAC AION’s ambitious expansion plans.

Moreover, the new plant aligns with Thailand’s broader environmental goals. The country has been actively promoting green technologies and sustainable practices to reduce carbon emissions and combat climate change. The increase in EV production capacity will contribute significantly to these efforts by providing more eco-friendly transportation options to consumers.

The collaboration between the Thai government and GAC AION highlights the importance of public-private partnerships in driving economic growth and technological advancement. By supporting the development of the EV sector, Thailand is positioning itself at the forefront of the global transition to cleaner and more sustainable transportation solutions.

To wrap up, the inauguration of GAC AION’s manufacturing facility in Rayong marks a significant milestone in Thailand’s journey towards becoming a regional EV manufacturing powerhouse. With a strong commitment to innovation, sustainability, and economic development, Thailand is well on its way to achieving its ambitious goals in the electric vehicle sector. This new plant is not only a testament to GAC AION’s confidence in the Thai market but also a promising sign of the country’s future as a leader in the global automotive industry.