China Thailand strengthens cooperation in the new energy vehicle industry
Recently, a batch of MG brand cars were assembled in the final assembly workshop of SAIC Zhengda Co., Ltd. in Hemeile Industrial Zone, Chumphuri Province, Thailand. After undergoing multiple quality inspection procedures, they are waiting to be taken offline. In recent years, Chinese automotive brands such as SAIC Zhengda MG, Great Wall, BYD, and Nezha have successively invested in and established factories in Thailand to achieve overseas production of electric vehicles.
In April this year, SAIC Zhengda New Energy Industrial Park laid the foundation. An industrial park covering an area of 120000 square meters, focusing on localized production of key components for new energy vehicles, and creating a new energy vehicle ecosystem. It is understood that the first phase of the project will be completed within this year, and the overall project will be completed in the first half of 2024.
In May, SAIC Zhengda Co., Ltd. launched the first batch of pure electric business model "New MG Datong 9" in the Thai market, which is currently the only high-end pure electric multi-purpose business model in the Thai market. "Electric cars are very quiet, with comfortable seats and relatively low operating costs," taxi driver Supaji told reporters. In addition to MG, there are also common electric taxis such as BYD, which is a beautiful scenery among tens of thousands of taxis in Bangkok. Many passengers choose electric cars for transportation.
According to data from the Thai Automobile Association, in 2021 and 2022, Chinese automobile brands accounted for 90% of the pure electric vehicle market in Thailand. In 2022, the sales of pure electric vehicles in Thailand reached 13454 units, a year-on-year increase of 588.5%. It is expected that the sales of pure electric vehicles in Thailand will exceed the 50000 unit mark this year.
"Chinese car manufacturers are 'running' into the new energy vehicle market in Thailand," said Kaiwalin, Deputy General Manager of Kaitai Research Center in Thailand. Pang Sa, Vice President of SAIC Zhengda MG Automotive Sales Co., Ltd., stated that Chinese car companies have launched a batch of cost-effective and market demand oriented electric vehicle products tailored to local consumer preferences, which is an important reason for the popularity of Chinese car brands in Thailand.
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The series of policy measures taken by Thailand to promote the development of the new energy vehicle industry have also created favorable conditions for Chinese enterprises to take root in the Thai market. The Thai government introduced the "30/30" policy in 2021, proposing that by 2030, 30% of its domestically produced cars will be zero emission vehicles, and by 2035, the number of zero emission vehicles will reach 1.35 million. Subsequently, the government implemented an electric vehicle subsidy program and tax incentives. At present, subsidies ranging from 70000 to 150000 Thai baht are provided based on the specific model of electric vehicles. In terms of taxation, from June 2022 to the end of 2025, the consumption tax on electric passenger vehicles will be reduced from 8% to 2%, and the consumption tax on electric pickup trucks will be directly reduced by 10%; In terms of road tax, electric vehicles registered from October 1, 2022 to September 30, 2025 will have an 80% reduction in road tax.
The Secretary General of the Thailand Investment Promotion Commission, Nali Tesatilasha, stated that the competitive advantage of Chinese new energy vehicle companies in Thailand stems from their excellent technology and innovation capabilities, and the prospects for cooperation in the new energy vehicle industry between Thailand and China are broad.