China’s BYD to start EV production in Thailand by 2024

The BYD logo is pictured on its Qin EV300 model during the Auto China 2016 Auto Show on April 26, 2016 in Beijing, China. Reuters/Kim Kyung-hoon/File photo

BANGKOK, Sep 8 (Reuters) – Chinese electric vehicle (EV) maker BYD (002594.SZ) announced Thursday that it will set up a facility in Thailand to begin producing 150,000 passenger cars per year from 2024.

BYD announced in a joint statement with Thai industrial developer WHA Group (WHA.BK) that a purchase agreement had been signed for 96 hectares (237 acres) of land in the eastern province of Rayong for the plant.

A 17.9 billion baht ($491.49 million) project to produce the EV was approved by Thailand’s investment board last month.

China’s largest manufacturer of EVs aims to sell 10,000 units in Thailand and export to Southeast Asian and European countries.

The factory in Thailand will produce the latest, fully electric Eto 3, among more than 30 others in the United States, Brazil and India, BYD general manager Asia-Pacific sales Liu Xueliang told reporters, adding that the company is also considering batteries. and parts based on demand.

The Thai government wants electric vehicle production to reach around 700,000 by 2030, or 30% of total auto manufacturing.

Southeast Asia’s second largest economy is a regional auto production and export base for the world’s major carmakers including Toyota (7203.T) and Honda (7267.T) and has more recently been used to attract and encourage EV manufacturers. Incentives including tax breaks and subsidies have been offered. Demand.

David Nardone, vice chairman of the WHA Group, told Reuters that investment interest in Thailand from Chinese auto and consumer goods companies has increased due to rising costs and travel restrictions.

“Supply chain, energy and labor costs have gone up … Producers want to meet their suppliers,” said Nardone, after the WHA raised its land sales forecast for the year by 55% to 224 hectares.

($1 = 36.4200 baht)

Reporting by Chayut Setboonsarng, Additional reporting by Zoey Zhang in Shanghai; Written by Kanupriya Kapoor; Editing by Martin Petty and Tomasz Janowski

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