Thailand: China will open its Automotive Technology and Research Centre (CATARC) in Thailand, marking its fourth such facility globally.
The move aims to facilitate Chinese electric vehicle (EV) manufacturers in Thailand, which has become a regional hub for automaking.
Chinese automakers, such as BYD and Great Wall Motor, have expressed their interest in setting up facilities in the booming market of Thailand due to its business-friendly tax incentives and subsidies. These automakers have agreed to make an investment of $1.44 billion in new production facilities in the country.
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CATARC, with centres in Germany, Switzerland, and Japan, chose Thailand as its next destination because it is the biggest automobile manufacturer and exporter in Southeast Asia, with Japanese automakers like Toyota Motor Corp and Isuzu Motors dominating the local market for many years.
With nearly 72,000 vehicles produced last year, Thailand took the lead in ASEAN EV production. However, the Southeast Asian country aims to shift around one-third of its 2.5 million annual auto manufacturing to electric vehicles by 2030.
Government subsidies, which are currently up to $4,265 per car, have contributed to the growing popularity of electric vehicles in Thailand, which accounted for about half of all EV sales in Southeast Asia in the second quarter.
Thai Prime Minister, Mr. Srettha Thavisin, stated that last week he showed Tesla executives an industrial estate for possible investment. This move signifies Thailand’s commitment to becoming a significant player in the electric vehicle market and attracting global industry leaders to invest in the country.