Chery Automobile’s Thai subsidiary, Omoda & Jaecoo (Thailand) Company Ltd, is gearing up to increase local content in its Thai-made electric vehicles (EVs) to between 45% and 50% by the end of the year. The company is set to commence operations at its new vehicle assembly plant in Thailand’s Rayong Province in August, with an initial production capacity of 50,000 vehicles per year. Additionally, a battery pack assembly line will be installed at the plant to cater to right-hand drive markets across South-east Asia.
Recently, Omoda & Jaecoo organized the Omoda & Jaecoo Sourcing Day in Bangkok, where approximately 200 local automotive component manufacturers participated. The company has already signed agreements with 50 of these manufacturers to source components. This initiative is expected to generate significant revenue of THB2.1bn (US$62m).
Narit Therdsteerasukdi, the general secretary of the Thai Board of Investment (BOI), highlighted the importance of these business matchings in boosting the local automotive industry. Omoda & Jaecoo aims to further increase local content in its Thai-made vehicles to 70-80% within the next five years, demonstrating a commitment to localization.
The Thai automotive industry has faced challenges in the past year, with a sharp decline in domestic vehicle sales and production. In 2021, overall vehicle volumes plummeted by 26% to 572,675 units, while vehicle production dropped by 20% to 1,468,997 units. Omoda & Jaecoo’s initiative to enhance local content in EV manufacturing could potentially contribute to the industry’s recovery and growth.
As Omoda & Jaecoo progresses towards its localization goals, the company remains focused on delivering high-quality EVs to meet the rising demand for electric mobility in the region. With a strong emphasis on sourcing components locally and fostering partnerships with Thai manufacturers, Omoda & Jaecoo is poised to play a significant role in advancing the sustainable mobility sector in South-east Asia.
