Economy Chinese EV Firm Omoda & Jaecoo Ramps Up Investment for Thai Expansion

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Photo courtesy of Bangkok Post

 

In an effort to energise Thailand's sluggish automotive market, Chinese electric vehicle (EV) manufacturer Omoda & Jaecoo (Thailand) is ramping up its investment to stimulate sales. The company, a branch of China's state-owned Chery Automobile, had already unveiled a 5-billion-baht plan to establish a battery EV plant in Rayong. This facility is expected to commence operations in the year's final quarter.

 

Rather than scaling back, the firm plans to increase its investment to back a robust marketing campaign aimed at enhancing sales, according to Qi Jie, President of Omoda & Jaecoo. "We have no plan to cut the investment budget. Instead, we will increase the budget to support our marketing campaign to boost car sales," he stated.

 

Given the intense competition within the EV sector, particularly from other Chinese manufacturers, an impactful marketing campaign is crucial for Omoda & Jaecoo. These efforts include strategic pricing and brand building to capture market attention.

 

However, Omoda & Jaecoo, like other EV producers, face challenges due to tightened auto loan availability. Banks and financing firms are wary of lending amidst Thailand’s high household debt levels, fearing an increase in non-performing loans.

 

Interestingly, Mr Qi expressed confidence about the Board of Investment’s (BoI) initiatives. These encourage EV manufacturers to incorporate more locally sourced components. Presently, BEV manufacturers benefiting from BoI incentives must ensure that 40% of their components are domestically sourced—a figure that rises to 45% for plug-in hybrids.

 

"We set a target to have local content make up more than 50% of total costs, up from less than 20% at present," remarked Qi, noting that the current low percentage is typical at this stage of the industry’s development in Thailand.

 

In terms of infrastructure, Omoda & Jaecoo is expanding its presence with plans to increase showrooms from 42 earlier this year to 70 by the end of 2025. Between October 2024 and June 2025, the company successfully sold 1,000 vehicles in Thailand, marking a promising foothold in the market.

 

With these strategic moves, Omoda & Jaecoo is positioning itself as a formidable player in Thailand’s evolving EV landscape, seeking to drive growth despite current economic challenges.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-22