China-based GWM (Great Wall Motor) International, which spent several billion baht developing a Thai electric vehicle (EV) factory, is adjusting its business strategy, including a plan to produce more diesel-fuelled cars, in response to economic uncertainties in Thailand and overseas.
The company is considering increasing its investment budget for producing diesel vehicles at its plant in Rayong for export and domestic sales.
"We want to focus on products with high growth potential in Thailand and Southeast Asia, and diesel engines are suitable for the landscapes in this region," said Parker Shi, president of GWM International.
During the 12-day Bangkok International Motor Show, which ended earlier this month, GWM reported its diesel car model "New GWM Tank 300 Diesel" received more than 300 bookings.
The company declined to elaborate on its new plan to produce diesel cars in Thailand, where the automotive industry is slumping.
Domestic car sales have fallen significantly, attributed to prospective buyers' difficulties in accessing loans. Banks and car financing companies have tightened their lending criteria based on the high level of household debt in the country.
In 2024, Thailand's domestic car sales tallied their lowest level in 14 years, only 572,675 units, according to the Federation of Thai Industries' Automotive Industry Club. Last year GWM sold 37,067 vehicles in Thailand.
"We set a target to have internal combustion engine-powered cars comprise 40% of total production, with 60% battery EVs and hybrid EVs," said Mr Shi.
The company previously announced it would spend 23 billion baht developing production facilities for battery EVs and battery cells. GWM already allocated 12 billion baht for the investment, with the remainder expected to be spent over the next three years, he said.
GWM is committed to producing 14,000 battery EVs domestically between 2024 and 2026 after it joined the state EV incentive package, dubbed EV 3.0, which grants lower excise tax and import duties as well as subsidies to support the sales of participating companies.
US President Donald Trump's decision to impose a 25% tariff on foreign cars imported into America is also concerning automakers, including GWM. The global automotive industry will be unable to avoid the impact of Washington's new trade policy, said Mr Shi.
GWM is planning to build a new auto factory in Brazil this September. The company operates factories in Russia and Thailand, in addition to its facilities in China.