Changan Automobile Opens First Overseas Manufacturing Plant in Thailand
In a significant development for Thailand’s automotive industry, Chinese state-owned carmaker Changan Automobile officially opened its first overseas vehicle factory in Rayong Province on May 16, 2025. This landmark facility represents a major investment in Thailand’s growing electric vehicle ecosystem and strengthens the kingdom’s position as a regional automotive manufacturing hub.
Investment and Production Capacity
The new manufacturing plant, located in the Eastern Economic Corridor industrial zone in Rayong, represents an investment of approximately 10 billion Thai baht (about 300 million U.S. dollars). The facility features comprehensive production capabilities across five main workshops: welding, painting, assembly, engine assembly and battery assembly units.
Initially designed with an annual production capacity of 100,000 vehicles, Changan plans to double this capacity to 200,000 units by 2027. The factory will produce a range of vehicles including standard electric vehicles (EVs), range extended electric vehicles (REEVs), and plug-in hybrid EVs. This facility will assemble Changan, Deepal, and Avatr brands.
Strategic Importance
As Changan’s first comprehensive overseas EV production base, the Rayong facility will serve as a manufacturing center for both the ASEAN region and global right-hand drive markets, including Indonesia, Australia, New Zealand, South Africa, and the United Kingdom. The plant’s inauguration was marked by the rollout of Changan’s 28.59 millionth vehicle from the assembly line.
Thailand’s Minister of Industry Akanat Promphan noted that Changan’s decision to establish its first overseas factory in Thailand reflects both the company’s confidence in the Thai market and strengthens the enduring friendship between Thailand and China.
Environmental Sustainability
Changan has designed the factory with sustainability and innovation at its core. The facility will feature environmentally friendly systems and cutting-edge technology, including:
– A 14 megawatt solar power system providing up to 45% of the factory’s electricity requirements
– Circulating air vents and louvered panels
– Natural lighting systems
– Rainwater recycling
These green initiatives are expected to reduce energy costs by 20% and significantly cut carbon dioxide emissions.
Local Economic Impact
The establishment of Changan’s manufacturing plant is expected to create significant employment opportunities in Thailand. The company plans to increase its Thai workforce from the current 600 to 2,000 employees by 2026, with Thais accounting for 90% of its total workforce.
Shen Xinghua, managing director of Changan Southeast Asia, estimates that the factory will generate approximately 30,000 jobs across the entire value chain, contributing significantly to local economic growth.
Supply Chain Development
Changan is committed to developing a robust local supply chain in Thailand. The company aims to use 65% locally sourced materials and components by the end of 2025, with plans to increase this to 80% by 2028. This localization strategy will involve partnerships with over 300 local suppliers, both Thai and Chinese-owned companies.
To support its service operations, Changan is also establishing a spare parts warehouse for right-hand drive markets, housing 98% of all parts and aiming to achieve 24-hour order delivery.
Research and Development
Beyond manufacturing, Changan has received approval from its headquarters in China to establish a Technology and Engineering Centre in Thailand. This center will serve as a hub for the development of right-hand drive vehicle technology and engineering in the region.
The company is also planning to relocate its regional office from Chongqing to Thailand to oversee operations across the Asia-Pacific region. These initiatives align with the Thai government’s policy to promote research and development and enhance the nation’s technological capabilities.
Future Plans
Over the next three years, Changan plans to launch 12 new models in Southeast Asia, all of which will be new energy vehicles. The company has already introduced several models to the Thai market, including the Changan Lumin, Deepal S05, Deepal E07, Deepal L07, Deepal S07, and Avatr 11.
By the end of 2025, Changan aims to operate 100 showrooms and service centers throughout Thailand, up from the 60 planned for the end of this year.
Supporting Thailand’s EV Ambitions
This investment comes at a strategic time as Thailand aims to increase the share of electric vehicles to 30% of all vehicles in the country by 2030. The kingdom has become a significant player in the global EV industry over the past two years, attracting major automotive manufacturers from around the world, particularly from China.
Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment (BOI), noted that the new plant marks not only a significant step forward for Changan but also a major contribution to the development of Thailand’s EV industry, boosting the country’s ambition to become a major global hub for EV production.
With Changan joining other Chinese automotive brands like MG, Great Wall Motor, and BYD in establishing operations in Thailand, the kingdom is well-positioned to achieve its goal of becoming a leading center for electric vehicle manufacturing in Southeast Asia.
