Chinese battery manufacturer Sunwoda Electronic has received approval to invest $1 billion in a new electric vehicle (EV) battery plant in Thailand, the country’s Board of Investment (BoI) announced on March 13. The project is expected to generate 1,000 local jobs and strengthen Thailand’s position in the regional EV industry.
The Shenzhen-based company will produce lithium-ion battery cells for EV manufacturers at the facility, which will also house research and product development operations, according to the BoI.
Thailand, Southeast Asia’s largest automobile production hub, has struggled with declining auto sales. Last year, vehicle output dropped 10% to a four-year low, while domestic sales and exports fell by 26% and 8.8%, respectively.
Chinese automakers, including BYD and Great Wall Motor, have already invested over 102 billion baht in Thailand’s EV sector, according to industry reports. To support growth, the Thai government has announced tax incentives for plug-in hybrid vehicles and credit guarantees for pickup truck buyers. Meanwhile, Japanese carmakers are seeking additional government support for a vehicle trade-in and scrapping scheme.
