Changan has pledged to purchase vehicle parts domestically.

Changan Automobile, a Chinese electric vehicle manufacturer, plans to purchase automotive parts from local suppliers under a 3.6 billion baht agreement to support the EV supply chain in Thailand, according to the Board of Investment (BoI).

This business agreement was made between Changan Automobile and 67 local businesses, according to Narit Teerasusuk, Secretary-General of the Board of Investment (BoI).

Companies from Thee participated in an event called "Changan Sourcing Day," held to identify business partners who can supply electric vehicle (EV) components to Changan Automobile.

Changan Automobile announced last year that it plans to begin production of SUVs at its Rayong factory in the first quarter of 2025, as SUVs are a highly popular vehicle segment in Thailand.

Changan aims to produce 100,000 electric vehicles per year, with an initial target of producing 30,000 to 50,000 SUVs.

The company aims to purchase various components for electric vehicles, such as high-voltage wiring, external door handles, crossover chassis, smart cooling systems, and exterior side mirrors.

The electric vehicle manufacturer in Chongqing is committed to investing up to 10 billion baht in Thailand, starting with investments in local businesses, accounting for 60% of the total, and increasing to 90% in the future, according to Shen Xinghua, Managing Director and President of Changan Auto Sales (Thailand).

Changan Automobile is one of several car companies from China and Europe interested in purchasing automotive parts from local suppliers.

"So far, we have held Sourcing Day events for four electric vehicle manufacturers: BYD, Neta, MG, and BMW. These events have led to business agreements concerning the sale of automotive parts worth 42 billion baht," said Mr. Narit Terdsteerasuk.

The rapid growth of Thailand's electric vehicle market has prompted local parts manufacturers, who are accustomed to internal combustion engine vehicles, to adapt to the demands of electric mobility technology.

The Federation of Thai Industries is working with global automotive manufacturers to assist up to 1,700 local parts manufacturers in transitioning to producing components for electric vehicles.

Source: Bangkok Post

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