With an emphasis on electric vehicles, China will establish an auto research institution in Thailand
Electric, thai government tax breaks and subsidies have already attracted Chinese automakers such as BYD and Great Wall Motor.
Thailand’s government said on Friday that China will create a China Automotive Technology and Research Centre (CATARC) in the regional automaking centre Thailand, manufacturing it the world’s fourth such facility.
Thai government tax breaks and subsidies have already enticed Chinese automakers such as BYD and Great Wall Motor to invest $1.44 billion in new production facilities in Thailand.
CATARC, a Chinese government-affiliated auto research institute, has centres in Germany, Switzerland, and Japan, with the latest one assisting Chinese electric vehicle (EV) producers in Thailand, according to Thai government spokesperson Chai Wacharonke. Thailand is the region’s top vehicle producer and exporter, with Japanese manufacturers such as Toyota Motor Corp and Isuzu Motors dominating the domestic market for decades.
Thailand wants to convert around one-third of its annual vehicle output of 2.5 million vehicles to EVs by 2030 and is planning incentives to attract additional investment and conversion into EV manufacture. Government incentives of up to 150,000 baht ($4,265) per vehicle have helped EVs gain pace in Thailand, which accounted for over half of all EV sales in Southeast Asia in the second quarter. Last week, Thai Prime Minister Srettha Thavisin said he showed Tesla executives an industrial estate for potential investment.