Chinese battery manufacturer SVOLT recently held a groundbreaking ceremony for its first plant in Southeast Asia, aiming to tap into the region’s rapidly growing electric vehicle (EV) market.
Situated in Thailand’s Chonburi province, the module pack factory is expected to produce 60,000 sets of module packs annually, following its completion in early 2024.
SVOLT’s entry into Southeast Asia aligns with the trend of Chinese EV companies, including GWM, SAIC and BYD, establishing localized production facilities in Thailand as the EV market in the region continues to gain momentum.
The influx of Chinese companies can largely be attributed to the supportive policies of the Thai government, which aims to see 30% of all vehicles produced in the kingdom be electric cars by 2030.
To foster competitiveness among Southeast Asian nations, Thailand has implemented policies encouraging investments throughout the entire EV industry chain.
The SVOLT factory plans to gradually enhance its energy storage and recycling operations while establishing a localized and efficient cell supply through battery recycling.
Yang Hongxin, chairman and CEO of SVOLT, highlighted Thailand’s pivotal role as a regional hub for automotive manufacturing and exports, providing SVOLT with excellent opportunities for overseas expansion and business growth.
According to Kasikorn Research Center, total sales of battery EV vehicles in Thailand are projected to surge to 50,000 units in 2023, representing a year-on-year increase of 271.6 percent, compared to 13,454 units sold in 2022.
Wisanu Tabtieng, Chief Inspectors General for the Ministry of Industry, emphasized Thailand’s eagerness for Chinese companies to invest in the next-generation automotive industry and make Thailand their base for ASEAN production. (NNT)
