GAC Battery Plant in Thailand Starts Production

Chinese carmaker Guangzhou Automobile Group (GAC) says its first overseas GAC battery plant has started production in Chonburi province, Thailand. The company announced on Tuesday, November 3, that the factory began work on October 29, Reuters and the Bangkok Post reported.

GAC calls the move a key step in localising its electric vehicle (EV) supply chain outside China.

What the new plant will make

The factory is run by INPOW, GAC's battery unit. It assembles battery packs for the Aion Y Plus electric car, which GAC already builds at its plant in Rayong. Key figures from the company include:

• planned capacity of 7,000 battery packs a year in phase one;
• up to 20,000 packs a year if a second phase goes ahead;
• total investment of more than 50 million yuan, on a site of over 13,000 square metres in an industrial park in Si Racha district, according to GAC Thailand;
• about 78.85% of raw materials and parts sourced locally.

GAC Thailand said the plant uses automated assembly lines with camera inspection and robotic welding, and each pack is tested for insulation at 1,500 volts and for IP68 water and dust protection.

Why it matters for Thailand's EV industry

GAC said the plant will shorten delivery times, make its Thai supply chain more secure and support its expansion across Southeast Asia. INPOW has delivered more than 300,000 battery packs in total, according to China EV news site CnEvPost.

The company entered the Thai market in 2023, started production at its Rayong car plant in 2024 and has now added a core component.

The news came on the same day as a planned sharp rise in the Thailand EV import tax on fully imported electric cars, from 10% to 35%. That policy is meant to reward brands that build locally, and carmakers with Thai factories, such as GAC, stand to benefit as imports become more expensive.

What it means for buyers and workers

For buyers, locally made batteries could help keep Aion Y Plus supply steady and cut waiting times, though GAC has not announced any price changes. For the Eastern Economic Corridor, the plant adds another link in the EV supply chain around Chonburi and Rayong, where many carmakers and parts suppliers are based.

Background: how the government refined its EV support policy and our earlier report on how Thailand eyed higher taxes on imported EVs.

Photo: GAC Aion Y Plus in Bangkok, by LuvsMG481 / Wikimedia Commons, CC BY-SA 4.0. File photo.