Omoda & Jaecoo International Co, a subsidiary of China's state-owned automobile manufacturer Chery International, plans to apply for Board of Investment (BoI) privileges to set up an electric vehicle (EV) production base in Thailand.
The company will disclose investment and business plans in a couple of months, said Qi Jie, Thailand national director at Omoda & Jaecoo International.
Chery is among the top 10 vehicle manufacturers in China.
"The company will launch two EV brands, Omoda and Jaecoo, in Thailand because it expects local customers will respond well to these brands," Mr Jie said.
Chery's investment plan in Thailand has three phases, with the first spanning 2024-25 with an EV production capacity of around 18,000 units a year.
The company plans to hold discussions this week with Arun Plus Co, a subsidiary of national oil and gas conglomerate PTT Plc, on a plan to hire Arun Plus to produce EVs for Omoda & Jaecoo during the first phase of the business plan, before it sets up its own manufacturing plant in the next step.
During the second phase from 2026-27, he said the company wants to increase production capacity to around 50,000 units a year, of which 45,000 will be for the export market, with the rest for the domestic market.
In the third phase spanning 2028-30, Omoda & Jaecoo's production capacity will be expanded to more than 100,000 units a year, of which 60,000 are for the export market, said Mr Jie.
He said the company is in talks with Thai partners about a long-term joint venture in EV car manufacturing.
"The company is discussing with Thai companies investment in an EV manufacturing plant and its location," said Mr Jie.
Thailand is the third country in Southeast Asia where Chery decided to invest, following Indonesia and Malaysia.
The new Thai manufacturing plant will produce EVs for only the domestic and export markets, he said.
The company aims to use Thailand for the production of EV exports, while Indonesia and Malaysia will produce internal combustion engine products, Mr Jie said.
Chery is waiting for Thailand's new government and the National EV Policy Committee to approve the country's "EV 3.5" scheme, referring to new measures for EV promotion as the current 3.0 scheme expires in December this year.
If the new government delays approval of this scheme, the company may postpone its investment in Thailand because the EV 3.5 scheme would support EV manufacturers and increase EV demand in Thailand, Mr Jie said.
"But we have confirmed that we will invest in Thailand," he said.
The company plans to build around 30 showrooms and launch after-sales services for Thai customers.
Omoda & Jaecoo expects to have around 15-20 dealers in the country.