Chongqing - Changan Automobile, a leading player in the automotive industry in Chongqing's Liangjiang New Area, has recently established its Thai subsidiary.
This move paves the way for the company to commence market sales in Thailand by the end of this year, demonstrating a critical step in its globalization journey.
The distribution center of Changan Automobile. (Photo/Wang Jiaxi)
Driven by the giant automaker, the automotive and components enterprises in the Liangjiang New Area reached a remarkable 33% growth, with a total import and export value of 12.8 billion yuan (about 1.74 billion US dollars) in the first half of this year.
As part of its strategic plan, Changan is set to invest 8.8 billion Thai baht in constructing a state-of-the-art new energy vehicle manufacturing base in Thailand. The first phase aims to have an annual production capacity of 100,000 vehicles, with plans to increase it to 200,000 vehicles in the second phase. This not only serves the domestic Thai market but also targets global markets, including Australia, New Zealand, the UK, and South Africa.
Thailand has actively implemented a series of industry policies, such as tax exemptions, consumer cash subsidiaries, and investment incentives, which have attracted numerous automotive companies, including Changan Automobile, to invest in the country.
This April, Changan officially unveiled its overseas strategy, known as the "Vast Ocean Plan."
This ambitious plan sets forth four goals to be achieved by 2030, including breaking through 10 billion US dollars in overseas market investments, surpassing 1.2 million units in annual overseas market sales, exceeding 10,000 overseas business personnel, and building Changan Automobile as a world-leading automotive brand.
The company plans to create two global bestsellers with sales exceeding 500,000 units each by 2030, establish over 20 localized marketing organizations, penetrate over 90% of global markets, and achieve sales exceeding 300,000 units in the European market by 2030.
In 2024, Changan Automobile will officially enter the European market and aims to complete the market layout in the major European market within two to three years.
It is not the only Chinese automaker eyeing Thailand as a bridgehead for its electric vehicle sales overseas. Companies like Neta, Great Wall Motors, GAC Trumpchi, and BYD have also introduced new electric products in Thailand.
Data reveals that in the first half of this year, Chinese brands collectively achieved a cumulative sales volume of 37,000 units in the Thai market, marking a remarkable 78.7% increase compared to the same period last year.