BOI steps up initiatives to incorporate Thai parts manufacturers into the EV supply chain

The Board of Investment of Thailand (“BOI”), in partnership with GAC AION, a leading global electric vehicle (“EV”) manufacturer from China and a BOI-promoted company, recently hosted the AION Sourcing Day. The event aimed to source key components from domestic manufacturers for GAC AION’s EV production line, focusing on seven key component categories: interior parts, exterior parts, electrical and electronics parts, chassis parts, car body parts, traction motor parts, and battery parts. The initiative is projected to drive domestic component purchases exceeding 2.25 billion baht.

GAC AION has established its first production base outside China through its subsidiary, AION Automobile Manufacturing (Thailand) Co., Ltd. located in Amata City Industrial Estate, Rayong Province. This investment, exceeding 5.6 billion baht, includes an initial phase of 1.3 billion baht, with an annual production capacity of 20,000 battery electric vehicles (BEVs). The company also plans to expand its investment in Thailand and currently operates its Thailand office as the Regional Headquarters for the ASEAN region.

The event aims to advance Thailand’s EV industry, particularly by enhancing the capabilities of local automotive parts manufacturers. This includes facilitating their integration into the EV supply chain through domestic component procurement, subcontracting, technology transfer, and joint ventures with foreign companies. GAC AION’s decision to collaborate with Thai parts manufacturers is based on three key factors:

 

1. 1. High Quality and Standards: Components manufactured in Thailand adhere to quality and industry requirements.

1. 1. Cost Efficiency for Large Components: Sourcing larger parts domestically reduces transportation costs compared to imports.

1. 1. Superior After-Sales Service: Domestic sourcing allows for more convenient and efficient after-sales service.
      Furthermore, GAC AION fully supports Thailand’s 30@30 policy, which aims for at least 30% of the country’s total vehicle production to consist of Zero Emission Vehicles (ZEVs) by 2030. Committed to this goal, the company will actively contribute to transforming Thailand’s EV sector into a regional manufacturing and export hub. GAC AION is dedicated to long-term sustainable growth, mutual benefit, and environmental stewardship in line with its development philosophy.