China's NETA Auto will produce electric vehicles in Thailand for the Southeast Asian market, a Thai official revealed on May 6, joining other companies building facilities in the country's main auto production hub, according to foreign media reports.
In a statement, the government spokesman Tipanan Sirichana said that this week, Hozon New Energy signed an agreement with a local car assembly company Bangchan General Assembly to begin production of NETA V models in Thailand in 2024.
The NETA V was launched in Thailand just last year by Hozon New Energy. According to Tipanan, the company also plans to start offering NETA U and NETA S models in the country in the near future.
Other Chinese electric car makers such as BYD have been investing in factories in Thailand as domestic and international consumer demand for brands such as Great Wall Motors and Tesla heats up. Last month, a Thai official revealed that China's Chang'an Automobile would invest $285 million in a factory in Thailand.
Thailand is Asia's fourth-largest car assembler and an export hub for carmakers such as Toyota and Honda. The country aims to become a key player in the global electric vehicle supply chain outside of China by providing measures such as tax breaks and subsidies to promote the adoption and production of electric vehicles. The Thai government has set a target for electric vehicles to make up 30% of the country's vehicle production by 2030.
NETA V is currently the second most licensed pure electric vehicle in Thailand and is well-recognised by Thai customers and key partners. The construction of the Thai factory will be NETA's main base for building right-hand drive electric vehicles for export to ASEAN, laying a solid foundation for its global presence. Next, NETA plans to expand its overseas business to more countries around the world, including the Middle East and the European Union.