GAC opens first factory outside China in Thailand

While three Japanese automakers (Subaru, Suzuki and Honda) have announced that they will cease operations at their factories in Thailand, Chinese automakers are quickly doing the opposite in the country as well as the ASEAN region.

Though their plans would have been made earlier, the move by the EU to raise tariffs on China-made vehicles could also have accelerated their production plans in other regions.

The latest is GAC Aion, a subsidiary of Guangzhou Automobile Corporation Group (GAC), which has invested 2.3 billion baht (about RM282.63 million) in a new factory in Rayong, an automotive hub in the country’s Eastern Economic Corridor.

Like other carmakers, GAC has chosen Thailand to be the EV hub of Southeast Asia so the factory is intended for its EV brand which was introduced in 2020 (though the subsidiary handling it started in 2017).

Annual production at its first factory outside China will start at 50,000 units, rising to 100,000 units later on. Models which will be made will be the Aion V, Aion Y Plus, and Hyper HT.

Advanced and intelligent manufacturing
Aion Automobile Manufacturing (Thailand) Co Ltd, as the facility is known, will utilise advanced and intelligent manufacturing processes for high quality and high efficiency. 100% data integration in the production process with robots managed by AI technology will ensure defect-free production and real-time adaptability to market demand.

Its AI-controlled quality management technology has been transferred from GAC Aion’s clean energy vehicle plant in China.

AFTA duty-free benefit
There will also be the benefit of duty-free import provided by the ASEAN Free Trade Area (AFTA) agreement between ASEAN nations. So even when Malaysia’s incentive for imported CBU EVs ends after 2025, those made in Thailand will still be exempted from import duties.

GAC also uses Malaysia
GAC will also use Malaysia as a production hub for its GS3 EMKOO. It has signed a MoU with WTCA for the assembly of the SUV for the Malaysian market as well as a lefthand-drive variant for export to Vietnam.

Assembly will be carried out at Tan Chong Motor Assemblies in Kuala Lumpur which is currently assembling the GS3 EMZOOM that was launched in April this year.

About GAC Motor
Compared to many of the Chinese brands that have appeared in Malaysia in recent times, GAC  actually has more years of experience in the auto business as its history goes back to 1955. In 2023, it produced and exported over 2.5 million of its vehicles to around 25 countries.

Over the years, GAC has formed joint ventures with many established global carmakers such as Honda, Fiat, Hino, Isuzu, Mitsubishi Motors, Peugeot and Toyota.

While gaining experience with working together with these carmakers, GAC Group has also developed its own technologies with a focus on new energy vehicles. Key technologies it has been working on include all-solid-state batteries, cobalt-free batteries, low-cobalt batteries, and sodium-ion batteries and last year, it also revealed an ammonia powered engine.

Visit gacmotor.com.my to know more about the GAC models to be available in Malaysia.

WTC Automotif building GAC network around Malaysia