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Saturday, June 22, 2024

SVOLT Breaks Ground on First Southeast Asia Plant, Expanding Presence in Growing EV Market

SVOLT, the Chinese battery manufacturer, has taken a significant step towards expanding its presence in the Southeast Asian electric vehicle (EV) market by holding a groundbreaking ceremony for its first plant in the region. The factory, located in Thailand’s Chonburi province, will focus on producing module packs for EVs and is expected to have an annual capacity of 60,000 sets once it is completed in early 2024.

SVOLT’s decision to establish a production facility in Southeast Asia is in line with the growing trend of Chinese EV companies, such as GWM, SAIC, and BYD, setting up localized manufacturing plants in Thailand. This move reflects the increasing momentum of the EV market in the region.

The Thai government’s supportive policies have played a significant role in attracting Chinese companies to invest in the country. Thailand aims to have electric cars account for 30% of its total vehicle production by 2030. To promote competitiveness among Southeast Asian nations, Thailand has implemented policies that encourage investments across the entire EV industry chain.

SVOLT’s factory in Thailand plans to expand its operations to include energy storage and recycling capabilities. Additionally, the company aims to establish a localized and efficient cell supply through battery recycling. SVOLT’s Chairman and CEO, Yang Hongxin, emphasized the strategic importance of Thailand as a regional hub for automotive manufacturing and exports, providing excellent opportunities for SVOLT’s expansion and business growth in overseas markets.

According to Kasikorn Research Center, the demand for battery EV vehicles in Thailand is projected to increase significantly, with sales expected to reach 50,000 units in 2023—a substantial year-on-year growth of 271.6% compared to 2022’s sales of 13,454 units.

Wisanu Tabtieng, Chief Inspectors General for the Ministry of Industry, expressed Thailand’s enthusiasm for attracting Chinese investments in the next-generation automotive industry. The country aims to become the preferred ASEAN production base for Chinese companies in the automotive sector.

Noah Gallix
Author: Noah Gallix

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