Omoda & Jaecoo (Thailand), a subsidiary of China’s Chery Automobile, has recently partnered with 50 local parts manufacturers to source components for its upcoming electric vehicle (“EV”) assembly plant in Thailand, set to commence operations in August 2025. This initiative is anticipated to generate approximately 2.1 billion baht in trade value, as reported by the Board of Investment (“BoI”).
This development aligns with Thailand’s strategic efforts to position itself as a regional EV manufacturing hub. The Thai government has been actively encouraging foreign EV manufacturers to utilize locally sourced components, aiming to bolster the domestic automotive supply chain. For instance, the Industry Ministry previously urged Chinese EV makers to ensure that at least 40% of their vehicle parts are sourced locally.
From a legal perspective, these partnerships necessitate careful navigation of Thailand’s regulatory landscape. Foreign investors must comply with local content requirements to benefit from government incentives, which may include tax breaks and subsidies. Additionally, establishing joint ventures or supplier agreements with Thai companies requires adherence to domestic laws governing foreign ownership and investment. Ensuring compliance with these regulations is crucial to mitigate legal risks and capitalize on the burgeoning EV market in Thailand.
Chinese Electronic Vehicle Producer’s Purchase of Manufacturing Components_Bangkok Global Law