Chinese battery electric vehicle (BEV) manufacturer Xpeng Group has confirmed that it is currently carrying out a feasibility study to establish a vehicle assembly plant in Thailand, after sales of zero-emission vehicles in the country surged by 88% to over 140,000 units last year.
Chinese BEV manufacturers are hoping that surging oil prices due to the war in Iran will translate into higher demand for non-internal combustion engine (ICE) vehicles in the region such as BEVs. Xpeng is looking to establish a plant that would support the company’s regional expansion drive, as well as supply vehicles for the local market.
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Xpeng entered the Thai market a year ago with completely built up (CBU) imports from its main manufacturing hub in Guangzhou, China, with sales amounting to around 2,800 units last year – split between the G6 and X9 models. A final decision on the investment is expected to be made in the next year.
Apiwan Singthaweesak, CEO of Xpeng Thailand, confirmed that “Xpeng is assessing and discussing investment opportunities in Thailand, including talks with a local company,” adding that Thailand offers good BEV sales opportunities, helped by government incentives.
