China's electric vehicle (EV) manufacturer, GAC AION, a subsidiary of GAC Group, has inaugurated its first factory in Thailand. This move positions Thailand as a key regional auto export and assembly hub and a fast-growing EV market. Let's delve into the specifics:

1. Factory Details

   - The factory, with an investment of 2.3 billion baht ($64.03 million), is strategically located in Rayong province, approximately 180 kilometers (112 miles) east of Bangkok.

   - GAC AION's facility is designed to produce 50,000 electric vehicles annually.

   - The company aims to support Thailand's EV production and promote the country as an EV industry center in Southeast Asia.

2. Thailand's Auto Industry Landscape

   - Historically, Thailand has been a regional auto production hub, primarily dominated by Japanese automakers like Toyota Motor and Isuzu Motor.

   - However, the landscape is shifting due to the entry of Chinese EV manufacturers. These companies have invested over $1.44 billion in Thailand, challenging the established Japanese players.

   - Thai consumers are rapidly adopting EVs, thanks to government subsidies and tax incentives. The government targets having 30% of its annual car production (2.5 million cars) as EVs by 2030.

3. AI-Driven Production Strategy

   - GAC AION's approach involves using artificial intelligence (AI) to produce quickly in smaller quantities, thereby reducing waste and minimizing costs.

   - Ma Haiyang, Managing Director of GAC AION Southeast Asia, emphasized this strategy during the factory's opening.

4. Rivalry and Impact

   - GAC AION's factory opening closely follows rival Chinese EV maker BYD Motor's entry into Thailand. BYD recently opened its first factory in Southeast Asia.

   - The rapid expansion of Chinese EV manufacturers has impacted Japanese auto producers. Suzuki Motor announced the closure of a Thai factory that produced up to 60,000 cars annually, while Honda Motor plans to consolidate its two Thai factories into one.

In summary, GAC AION's investment in Thailand underscores the country's growing prominence in the EV industry. With both GAC AION and BYD setting up production facilities, Thailand is poised to play a pivotal role in shaping the future of electric mobility in Southeast Asia.