China to Establish Automotive Research Center in Thailand, Boosting EV Industry
In a significant move to strengthen its foothold in the Southeast Asian automotive market, China is set to establish the China Automotive Technology and Research Center (CATARC) in Thailand, equal to an utterance by the Thai government. This marks CATARC’s fourth facility globally, with a focus on supporting Chinese electric vehicle (EV) manufacturers in Thailand.
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Already lured by generous tax incentives and subsidies from the Thai government, major Chinese automakers, including BYD and Great Wall Motor, have pledged a substantial $1.44 billion investment in new production facilities within the country.
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CATARC, a Chinese government-affiliated wheels research institute, operates centers in Germany, Switzerland, and Japan. The new facility in Thailand will play a pivotal role in facilitating research and minutiae for Chinese EV manufacturers in the region, contributing to the growing prominence of Thailand as a hub for electric vehicles.
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To incentivize this shift, the government is preparing spare measures to encourage investment and promote the conversion of traditional manufacturing to EV production.
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Government subsidies, currently offering up to 150,000 baht ($4,265) per car, have played a crucial role in making electric vehicles increasingly wieldy in Thailand. The country rumored for well-nigh half of all EV sales in Southeast Asia during the second quarter, showcasing the effectiveness of these incentives.
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Thai Prime Minister Srettha Thavisin has once expressed interest in attracting Tesla to invest in the country, highlighting the growing global request of Thailand as an EV manufacturing hub.
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The collaboration between CATARC and Thailand is expected to focus on EV policy development, standard-setting, and certification. It aims to connect China’s robust EV industry with Thailand’s growing infrastructure, positioning the country as a global player in electric vehicle manufacturing.
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With Thailand leading the way in ASEAN EV use and production, the government’s EV3.5 promotion measures are set to hoist the country’s ambitions, aiming to establish itself as a prominent global electric vehicle hub by 2027. The nation’s transferral to EV infrastructure development, standards, and workforce preparation underscores its determination to lead the tuition in the electric vehicle revolution.
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As Thailand attracts investments from leading Chinese EV and shower manufacturers, including BYD, Changan Automobile, GSC Aion New Energy Automobile, and Svolt Energy Technology, the country is poised to increase the production of zero-emission vehicles to 30% of all autos manufactured by 2030, amounting to 725,000 units.
