Chinese firms eye EV supply chain in Thailand’s Smart Park

[webfact]

 

Chinese companies have shown keen interest in the EV supply chain and energy sectors of the Smart Park Industrial Estate, situated in Rayong, Thailand. This estate is due to open by the end of the current year, according to the Industrial Estate Authority of Thailand (IEAT).

 

The companies aim to establish factories manufacturing EV components to cater to the burgeoning Thai EV market. They also have plans to venture into energy development, revealed Veeris Ammarapala, the governor of IEAT.

 

“We have taken this group of investors to visit Smart Park,” he stated. “They are interested in leasing large plots of land and are gathering data to conduct feasibility studies on their new businesses.”

Smart Park gives particular importance to the digital sector, with digital technology playing a crucial role in supporting several businesses, including EV assembly. The Thai government offers incentive packages to global EV manufacturers to invest in Thailand, with the broader objective of establishing Thailand as a regional hub for EV production.

As per an EV roadmap for the period between 2022 and 2030, authorities intend for battery EVs to constitute 30% of total car manufacturing by 2030. This includes the production of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

 

Amidst these developments, the IEAT plans to further encourage investment at Smart Park by offering a one-year waiver on land rental costs and an exemption on fees for operating facilities at the industrial estate for the same duration.

 

With a focus on targeted industries and supporting a drive towards carbon neutrality, Smart Park is situated in the Map Ta Phut area, covering 1,383 rai of land. The estate also supports the aviation and logistics, medical devices, and robotics sectors, in addition to the digital sector.

 

Smart Park’s construction is currently 82% complete. “We expect Smart Park to create 7,459 jobs and generate 1.3 billion baht (US$ 35 million) a year for the economy,” said Veeris, reported Bangkok Post.

 

In a bid to combat global warming, the IEAT recently announced its partnership with six Thai and Japanese companies. The collaboration will involve a joint study on hydrogen fuel at the Map Ta Phut and Smart Park industrial estates. This project aligns with Thailand’s carbon neutrality target and supports investors interested in using clean-energy-based electricity and transport.

 

by Alex Morgan

Picture courtesy of JUICE, Unsplash

 

Source: The Thaiger 2024-04-16

 

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[Geoffggi]

Do not fall into the reliant on Chinese trap .................

[rbkk]

Is this the industrial park that is owned by the Chinese Govt (CCCP) I read about last year? Chinese companies renting from a Chinese landlord. How could the Thai Govt. allow this to happen? 

[hotchilli]

3 hours ago, webfact said:

“We have taken this group of investors to visit Smart Park,” he stated. “They are interested in leasing large plots of land and are gathering data to conduct feasibility studies on their new businesses.”

When China own your economy they run your country.... 

[JBChiangRai]

Since 1/1/2023 China has not subsidised the manufacture or sale of any EV's. 

 

However, what they have done is invested in the value chain in regions outside China eg Europe, Aftrca, the Middle East & Asia.  Their investment aims to lower production costs and support the expansion of Chinese EV's in those markets. They are moving production into Europe, South America and Asia.  In Finland alone they have invested over $2B in battery production ventures.

 

So yes, I am sure some of their investment has found it's way to this park.

 

China bolsters defence of overseas EV sales against US, EU counterpunches – Money Lowdown

Edited April 16 by JBChiangRai
add link

[PETERTHEEATER]

4 hours ago, rbkk said:

Is this the industrial park that is owned by the Chinese Govt (CCCP) I read about last year? Chinese companies renting from a Chinese landlord. How could the Thai Govt. allow this to happen? 

Yes, indeed, I wonder.....🤔

[stjp8729]

3 hours ago, JBChiangRai said:

Since 1/1/2023 China has not subsidised the manufacture or sale of any EV's. 

 

However, what they have done is invested in the value chain in regions outside China eg Europe, Aftrca, the Middle East & Asia.  Their investment aims to lower production costs and support the expansion of Chinese EV's in those markets. They are moving production into Europe, South America and Asia.  In Finland alone they have invested over $2B in battery production ventures.

 

So yes, I am sure some of their investment has found it's way to this park.

 

China bolsters defence of overseas EV sales against US, EU counterpunches – Money Lowdown

"Since 1/1/2023 China has not subsidised the manufacture or sale of any EV's. "

 

Good one.. Guess "50 cent Army" are involved in the statement. 

[zhounan]

China has the dominance in this sector, we shouldn't be surprised.

[JBChiangRai]

12 hours ago, stjp8729 said:

"Since 1/1/2023 China has not subsidised the manufacture or sale of any EV's. "

 

Good one.. Guess "50 cent Army" are involved in the statement. 

Then you would guess wrong.

 

https://moneylowdown.com/economy/china-bolsters-defence-of-overseas-ev-sales-against-us-eu-counterpunches/

[Eric Loh]

22 hours ago, rbkk said:

Is this the industrial park that is owned by the Chinese Govt (CCCP) I read about last year? Chinese companies renting from a Chinese landlord. How could the Thai Govt. allow this to happen? 

Smart Park is part of the Eastern Special Economic Zone owned by the Thailand government. The Park has attracted THai and Japanese firms besides the Chinese. Target on attracting investors in the digital segment as well as aviation, medical devices and robotics. 

[rbkk]

4 hours ago, Eric Loh said:

Smart Park is part of the Eastern Special Economic Zone owned by the Thailand government. The Park has attracted THai and Japanese firms besides the Chinese. Target on attracting investors in the digital segment as well as aviation, medical devices and robotics. 

"The Thai-Chinese Rayong Industrial Park has been developed by Rayong Industrial Zone Development Co., in which Holley Group (China) holds controlling shares. The park is located in Amata Industrial City, Thailand." http://www.mofcom.gov.cn/article/beltandroad/th/enindex.shtml

 

Perhaps it was this park I read about last year. My point is still, how can Thailand give away control of its industrial parks. Surely foreigners should only be allowed the minority holding?

[Eric Loh]

50 minutes ago, rbkk said:

"The Thai-Chinese Rayong Industrial Park has been developed by Rayong Industrial Zone Development Co., in which Holley Group (China) holds controlling shares. The park is located in Amata Industrial City, Thailand." http://www.mofcom.gov.cn/article/beltandroad/th/enindex.shtml

 

Perhaps it was this park I read about last year. My point is still, how can Thailand give away control of its industrial parks. Surely foreigners should only be allowed the minority holding?

Amata is privately owned. It should be within their rights to partner the Chinese to develope the Thai-Chinese Rayong Industrial Zone. Amata is a huge industrial real estate and several industrial cities catering for investers from different countries. 

[stjp8729]

On 4/17/2024 at 6:43 AM, JBChiangRai said:

Then you would guess wrong.

 

https://moneylowdown.com/economy/china-bolsters-defence-of-overseas-ev-sales-against-us-eu-counterpunches/

Sorry Mr "50 cent Army", referring to an CCP controlled media is just stupid. Await instead the official EU investigation with solid proof. 

[JBChiangRai]

1 hour ago, stjp8729 said:

Sorry Mr "50 cent Army", referring to an CCP controlled media is just stupid. Await instead the official EU investigation with solid proof. 

 

 

The only half a dollar around here is your knowledge.

 

https://www.reuters.com/business/autos-transportation/global-ev-sales-stay-strong-china-hits-record-despite-end-subsidies-2023-11-14/

 

another impeccable post saying exactly the same thing and www.moneylowdown.com has nothing to with China

 

Edited April 18 by JBChiangRai
Accidentally deleted text

[vinny41]

There are many different types of subsidies

The statement "Since 1/1/2023 China has not subsidised the manufacture or sale of any EV's. " is incorrect

Since 1/1/2023 There have been no subsidies available for the purchase of EV's by customers however there are tax breaks available to customers who purchase EV's extending to 2027

China Extends NEV Tax Reduction and Exemption Policy to 2027

https://www.china-briefing.com/news/china-extends-nev-tax-reduction-and-exemption-policy-to-2027/

There are huge subsidies provided to the EV automotive manufacturers

Between January 2023 and June 2023

Among EV assemblers, Shanghai-listed SAIC Motor was the largest recipient of government assistance, bagging over 2 billion yuan in subsidies, almost double from a year ago.

BYD, China's leader in EV sales and set to surpass Volkswagen this year as the country's top-selling auto brand, closely followed SAIC on the subsidy list. It received 1.78 billion yuan in the first half, or close to three times as much as the year before

https://asia.nikkei.com/Spotlight/Electric-cars-in-China/China-gives-EV-sector-billions-of-yuan-in-subsidies

[JBChiangRai]

23 minutes ago, vinny41 said:

There are many different types of subsidies

The statement "Since 1/1/2023 China has not subsidised the manufacture or sale of any EV's. " is incorrect

Since 1/1/2023 There have been no subsidies available for the purchase of EV's by customers however there are tax breaks available to customers who purchase EV's extending to 2027

China Extends NEV Tax Reduction and Exemption Policy to 2027

https://www.china-briefing.com/news/china-extends-nev-tax-reduction-and-exemption-policy-to-2027/

There are huge subsidies provided to the EV automotive manufacturers

Between January 2023 and June 2023

Among EV assemblers, Shanghai-listed SAIC Motor was the largest recipient of government assistance, bagging over 2 billion yuan in subsidies, almost double from a year ago.

BYD, China's leader in EV sales and set to surpass Volkswagen this year as the country's top-selling auto brand, closely followed SAIC on the subsidy list. It received 1.78 billion yuan in the first half, or close to three times as much as the year before

https://asia.nikkei.com/Spotlight/Electric-cars-in-China/China-gives-EV-sector-billions-of-yuan-in-subsidies

My understanding of the subsidies to the Chinese EV sector post 1/1/2023 is that they are both investments by China and grants the purpose of which is to fund overseas value chain advantages. None of them go into domestic EV production.

 

For example, grants to help BYD build assembly plants in Europe, purchase of large roro ocean going distribution ships, investments in rare earths organizations and battery plants.  SAIC to open a network of dealerships across Europe. The scale of which is much larger than Nikkei published, it’s something between $25-$30B.  But none of these fund the manufacturing cost of any EV’s only the barriers to entry to market on the worldwide stage.

 

It could be argued that whether this is subsidizing Chinese EV’s is just semantics.  However, it’s no different to the grants Tesla received for its Giga factory in Germany, or Nissan received for its auto plant in Sunderland UK or TATA received for its steel plants in the UK.  In my book, there’s no difference.
 

Fundamentally, a Chinese EV costs 50% more here than it does in China and the subsidies they got from the CCP were to open assembly plants here.