Chery’s Omoda & Jaecoo unit building EV plant in Thailand – Rayong factory to start production in 2025

Omoda & Jaecoo Thailand, a subsidiary of Chery, is planning a new EV factory in Rayong, Thailand. According to Bangkok Post, production is set to start in 2025, and the plant will initially produce cars for domestic and ASEAN markets. Chery has plans to make Rayong a global export base, supplying Oceania and the Middle East.

“We plan to divide our manufacturing into two phases. In the first phase, which starts in 2025, annual production capacity will stand at 50,000 units. The number will increase to 80,000 units a year in 2028,” said Qi Jie, vice-managing director for South Asia at Chery International.

“Our BEVs will make up 70% of total car production, with the remaining 30% belonging in the PHEV category,” Qi said, adding that he believes Thailand has great potential to develop an EV industry thanks to the government’s EV3.5 scheme.

EV3.5 is Thailand’s EV incentive scheme that comprises subsidies and a reduction in import duties and excise tax to promote electric vehicle production and purchase from 2024 to 2027. Parent company Chery is expected to finalise investment details in next month – funds will go towards purchasing the land, building the factory and developing EV charging facilities.

For now, O&J’s cars will be CBU imported from China and the sales target for the Omoda C5 EV (Chery Omoda E5 in Malaysia) and Jaecoo 7 plug-in hybrid (Jaecoo J7 is launching soon in Malaysia, but as a pure-ICE model) is 6,000 units this year. The company plans to set up 35 showrooms in the Land of Smiles, with 20 of those to be located in capital city Bangkok.

What does this mean for Malaysia? While Chery has CKD operations in our country, capacity is somewhat limited at Inokom in Kulim, Kedah, as the facility is shared with other brands. Should demand grow, will Chery Malaysia source some models from our northern neighbour to expand its range?

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