China’s Aion Opens Its First Overseas EV Plant in Thailand

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GAC Aion rolled out a second-generation AION V from the new factory in Thailand on Wednesday. Photo: GAC Aion

Guangzhou Automobile Group Co. Ltd.’s (GAC) (601238.SH) electric-vehicle (EV) marque Aion has begun operations at its first overseas plant in Thailand, a country which hopes to become a major hub for EV production.

Located in Thailand’s Rayong province, the facility will manufacture the second-generation Aion V compact SUV, Aion said in a statement Wednesday.

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GAC's Aion has launched its first overseas EV plant in Rayong, Thailand, aiming to produce the Aion V compact SUV.
The plant will enhance Aion's presence in Thailand and supports GAC's goal to sell 500,000 vehicles annually outside China by 2030.
Thailand promotes EV production with import subsidies, with 85% of registered EVs in 2023 from Chinese brands, and other Chinese automakers like BYD and Neta Auto also expanding locally.

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Who’s Who

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC) is a Chinese automaker that has expanded its electric-vehicle (EV) operations overseas, starting with its Aion marque's plant in Rayong province, Thailand. GAC aims to sell 500,000 vehicles annually outside China by 2030. The Thai facility will initially produce the Aion V compact SUV. This move supports Thailand's goal to become a major EV production hub.

BYD Co. Ltd.: Earlier this month, BYD Co. Ltd., an EV giant, put into operation an EV plant in Thailand. The plant will produce vehicles for consumers in Southeast Asia and Europe, marking BYD's efforts to localize manufacturing in Thailand and strengthen its position in the global EV market.

Neta Auto: Neta Auto began production at its first overseas EV plant in Thailand in November 2022. The company entered the Thai market in August 2022, selling a budget electric subcompact crossover assembled in China.

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What Happened When

2021：: Thailand unveiled a development roadmap for its EV industry, aiming for electric cars and motorcycles to make up 30% of the total produced in the country by the end of the decade.

August 2022：: Neta Auto entered the Thai market, selling a budget electric subcompact crossover assembled in China.

2023：: A total of 76,314 electric cars were registered in Thailand, with nearly 85% being Chinese brands.

November 2023：: Aion announced that the construction of the Thai plant would be divided into two phases.

November 2023：: Neta Auto kicked off production at its first overseas EV plant in Thailand.

2024-07：: BYD Co. Ltd. put into operation an EV plant in Thailand.

2024-07-17：: GAC's Aion began operations at its first overseas plant in Thailand.

By the end of 2024：: The EV3.0 program will conclude, which stipulates carmakers will pay less import taxes if they make at least one car in Thailand for every one they import.

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