The Thai automotive industry is expected to benefit from the government’s proposed car trade-in policy, which Omoda and Jaecoo (Thailand) says will stimulate sales, strengthen supply chains, and accelerate the country’s push towards carbon neutrality.
The company, a subsidiary of Chinese automaker Chery Automobile, believes the measure will encourage consumers to replace internal combustion engine (ICE) vehicles with low- or zero-emission models, such as battery electric vehicles (BEVs) and hybrid EVs.
New cars under the scheme would have to be made in Thailand in order to stimulate employment and support auto parts suppliers, according to media reports.
Cedric Cui, president of Omoda and Jaecoo (Thailand), said the policy was timely.
“It’s the right moment to boost the automotive industry and supply chains. We expect this policy to speed up Thailand’s energy transition from ICE vehicles to new energy vehicles such as BEVs, hybrid EVs and plug-in hybrids,” he said.
Thailand’s automotive sector continues to face challenges from volatile global oil prices and rising logistics costs, exacerbated by geopolitical tensions in the Middle East.
Mr Cui noted that raw material shortages, including plastics and helium, the latter of which is critical for semiconductor production, are adding pressure onto manufacturers.
Despite these hurdles, he pledged that the company would not raise car prices, saying it does not want to increase the burden on customers.
Bill Zhang, the company’s country director, described the trade-in scheme as a “new hope” policy that could revitalise the industry.
“We are waiting to see the government’s conditions, but this is really a good policy and a new hope for the industry,” he said.
Omoda and Jaecoo recently launched its BEV manufacturing plant in Nikhom Phatthana district in Rayong. Built on 104 rai with an investment of 5 billion baht, the facility has an annual production capacity of 80,000 units.
The company plans to produce 3,000-4,000 BEVs in the initial phase, with most destined for Thai customers before expanding exports to Malaysia.
A battery plant is also planned to support local BEV production.
The company currently uses 45% local content in its vehicles and aims to increase this share to meet government requirements.
Omoda and Jaecoo’s global operations are supported by eight R and D centres, 19 manufacturing bases, more than 300 suppliers, and a sales and service network spanning over 3,000 locations.
Chery Automobile, its parent company, has become the first Chinese automaker to surpass 6 million cumulative exports. In March, overseas shipments reached 148,777 units, marking a 72% year-on-year increase.