Peter Lyon
August 29, 2024
It’s official. Changan is finally coming to Southeast Asia. One of the “big four” state-owned Chinese automakers, Changan Automobile, has started construction of a new production plant in Thailand, which will be its first in the region.
As the group’s right-hand drive hub, the new plant in Rayong province will manufacture battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and range-extended EVs (REEVs) for brands under the Changan Auto umbrella. These vehicles will be sold in Thailand as well as other export markets including Malaysia.
Shen Xinghua, the managing director of Changan Auto Southeast Asia, said in an interview with The Bangkok Post that the facility is expected to start producing BEVs in March 2025. “This expansion underscores our commitment to the region and is crucial for our global strategy.”
The new assembly factory, which will cost more than THB10 billion (or roughly RM1.27 billion), is expected to start production with 100,000 vehicles yearly and increase to 200,000 units by 2026.
Commencing in November 2023, the facility is already 80% completed including the paint shop. When finished, the plant will occupy more than 400,000 square meters and include a 3,000 square metre parts warehouse with space for over 40,000 parts of more than 2,000 types. Additionally, a 6 MW solar power system will be included, which can meet up to 19% of the plant’s electrical requirements.
In Thailand, Changan currently sells the Deepal L07, Deepal S07, and Lumin L. Along with the Changan Nevo E07 REEV, the Avatr 11 has also been shown in the Kingdom since 2023 and is scheduled to make its formal debut this year.
The Chinese automaker intends to offer the right-hand drive (RHD) cars for sale to consumers in Indonesia, Australia, New Zealand, South Africa, and the United Kingdom in addition to Malaysia. Although the firm did not disclose the markets for these cars, the Rayong plant is also scheduled to produce left-hand-drive (LHD) vehicles.
Changan is the latest in a long list of Chinese car manufacturers that have chosen Thailand as their regional EV production hub. This is due to the Kingdom’s favourable tax cuts and subsidies designed to promote EV adoption in the country.
The production plants for MG, BYD, GWM, GAC, and Neta are also located in Rayong. A group of Japanese automakers, including Toyota, Honda, Isuzu, and Mitsubishi, has also pledged RM20 billion to establish electric vehicle production in Thailand, while Tesla has apparently scrapped its intentions to establish a plant in the country.
Interestingly, Changan revealed in 2022 that it will establish a production plant in Jasin, Melaka, at an expense of RM1 billion, in collaboration with Fieldman EV Sdn Bhd, a business that has already obtained exclusive distribution rights for the brand in Malaysia. Despite this announcement, nothing has been heard from the companies since.
In August of last year, the Changan and Deepal names were filed as trademarks with the Malaysia Intellectual Property Office (MyIPO). Chongqing Changan Automobile Co. Ltd. filed the documents, which may indicate a formal reintroduction here in Malaysia shortly—possibly without a local partner this time.
CARLIST THOUGHTS
At last, major Chinese carmaker Changan Auto is set to make its mark in SEA and with a comprehensive plant in Thailand. The brand already has three models including the Deepal S07 and Lumin L on sale and we can expect to see it escalate its lineup quickly with BEVs and PHEVs soon.
