Chinese electric vehicle maker Changan Automobile plans to buy auto parts from local suppliers under deals valued at 3.6 billion baht to help promote the EV supply chain in Thailand, says the Board of Investment (BoI).
The business agreements were based on talks between Changan Automobile and 67 local companies, said Narit Therdsteerasukdi, secretary-general of the BoI.
Thee companies recently joined an event entitled "Changan Sourcing Day", which was held to identify business partners able to supply EV components to Changan Automobile.
Changan Automobile announced last year it plans to start producing sport utility vehicles (SUVs) from its Rayong factory in the first quarter of 2025.
SUVs are a popular segment in Thailand.
Changan aims to produce 100,000 EVs a year and initially manufacture 30,000 to 50,000 SUVs.
The firm wants to buy EV components such as high voltage harnesses, exteriror door handles, cross car beams (die cast), intelligent thermal and external door mirrors.
The Chongqing-based EV maker, which is committed to an investment in Thailand of up to 10 billion baht, will start with local content constituting 60% of the total, increasing to 90% in the future, Shen Xinghua, managing director and president of Changan Auto Sales (Thailand), said earlier.
Changan Automobile is among several car companies from China and Europe that are interested in purchasing auto parts from local suppliers.
"We have so far organised Sourcing Day events for four EV makers -- BYD, Neta, MG and BMW," said Mr Narit.
"These events led to business deals on auto parts sales worth 42 billion baht," he said.
The rapid growth of Thailand's EV market is causing local parts producers, which are familiar with internal combustion engine-powered cars, to adapt to the requirements of electric mobility technology.
The Federation of Thai Industries is working with global car producers to assist up to 1,700 local auto parts makers to shift to producing parts for EVs.