China’s fourth-largest electric vehicle (EV) manufacturer, GAC AION New Energy Automobile, will open a new manufacturing facility in the Eastern Economic Corridor area of Rayong province on July 17.

Industry Minister Pimphattra Wichaikul said on Tuesday that the company aims to officially start production in Rayong in November this year. The 2.3 billion baht facility has the capacity to produce 50,000 units per year, she added.

“The opening of a new EV manufacturing plant strengthens Thailand’s potential in becoming a manufacturing hub for electric vehicles in this region, in line with the government’s investment policy,” she said.

Pimphattra added that the government aims to maintain balanced promotional measures for manufacturers of both EVs and internal combustion engine (ICE) vehicles, as they are both important to the country’s economy.

“ICE vehicle manufacturers are crucial to domestic part manufacturers and other supply chain providers, which comprises mostly SMEs,” she said. “The ministry has been coordinating with the Japan External Trade Organisation [JETRO] and the Japanese Chamber of Commerce in Bangkok to find suitable measures to help ICE manufacturers cope with declining sales and changes in the auto industry.”

A source said the Rayong plant will be GAC AION’s first overseas factory producing right-hand drive vehicles and the first model produced here will be Aion Y Plus.

GAC AION announced its investment plan in Thailand in November last year and began the construction of its Rayong factory in January. The company is confident that the new factory will help contribute to Thailand’s target of selling 1 million EVs in 2025.

The source added that GAC AION is planning to establish 34 sales outlets in Thailand and is also in the process of establishing a new factory in Indonesia as part of a plan to penetrate Southeast Asia.