Thonburi Neustern Co, the distributor of electric vehicles (EVs) under the Geely brand, is planning to strengthen the Chinese EV maker's position in Thailand through new investment, starting with the development of an auto parts centre.
The company is in talks with Geely Auto Group, which is among the five largest EV sellers in China, regarding a plan to develop parts distribution and a warehouse in Thailand, the first step before pushing ahead with greater investment.
"Our company and partner Geely Auto Group want to first build this facility as part of a short-term business plan to grow trust and confidence in our brand among customers," said Narong Sritalayon, chief executive of Thonburi Neustern.
He did not disclose the amount of investment, but said a final decision on the budget would soon be concluded.
The company imports Geely cars for sale in Thailand.
Both Thonburi Neustern and Geely Auto Group are considering a plan to produce the Geely EX5, an electric sports utility vehicle, in Thailand, said Mr Narong.
In addition to Geely EV sales, the Hangzhou-based company has also launched a range of EVs under its Geely Geometry sub-brand. The firm formed a global automotive brand with Volvo Car Group called Lynk & Co.
Geely Auto is expanding its business in Thailand, targeting the development of 30 showrooms across the country. By the middle of this year, it plans to open at total of 17 showrooms in Bangkok and upcountry.
The company has set a target to sell 8,000-9,000 cars, the majority of which will be Geely EX5s, this year.
During the Bangkok International Motor Show, which ended on April 6, Geely Auto received orders for 1,018 units, compared with BYD, which led the way with 9,819 units. BYD overtook Toyota at this year's edition of the event. Toyota came second this year in terms of bookings, with orders for 9,615 units, according to the organiser.
Total car bookings during the 12-day event tallied 77,379 units.
Mr Narong said the price war among some car brands continues this year but will gain less momentum amid sluggish domestic car sales, caused by prospective buyers' difficulties in accessing auto loans.
Banks and car finance firms have tightened their lending criteria for fear of non-performing loans caused by the chronically high level of household debt in Thailand.