Embracing SEA, China backs the expansion of BEV and chip manufacturing into Thailand

Battery electric vehicle (BEV) manufacturer Xpeng, alongside battery supplier CALB and chip producer Henan Shijia Photons Technology, have unveiled plans for expansion into Southeast Asia. This was revealed during the recent National People's Congress (NPC), China's authoritative legislative body, as reported by Nikkei Asia.

Xpeng's CEO, He Xiaopeng, highlighted the fierce competition within China's New Energy Vehicle (NEV) market and stressed the significance of innovation and customer-centric strategies. Leveraging Volkswagen's strategic investment, Xpeng aims to benefit from VW's expertise in global operations, supply chain management, and sales networks.

Xiaopeng outlined the company's strategy to venture into European markets like Germany and France this year, followed by expansions into Southeast Asian regions. "We're gearing up to introduce models with right-side steering wheels in the latter half of the year and expand into Thailand, Singapore, and Malaysia, as well as Hong Kong and Macao," he stated.

Xpeng has already secured its presence in Malaysia, with Bermaz Auto securing the distributorship rights for the brand in the country.

Also read: Bermaz confirmed to launch XPeng in Malaysia

Liu Jingyu, Chairwoman of China Aviation Lithium Battery (CALB), emphasised the global drive for decarbonisation and the sustained demand for high-quality automotive batteries. Despite a slowdown in BEV sales in Western markets, Liu remains optimistic about the sector's growth prospects, pointing out the importance of advanced battery technology.

CALB's international expansion plans involve establishing manufacturing plants in Portugal and Thailand. "We're presently exporting automotive batteries and intend to ramp up production. Our first overseas plant in Portugal is under construction, and we plan to establish one in Thailand as well," Liu mentioned.

Wu Yuanda, Vice President of Henan Shijia Photons Technology, underlined the company's dedication to bolstering China's self-sufficiency in critical optical telecommunication components. Specialising in the optical communication sector, Henan Shijia Photons Technology's primary focus areas include optical chips, indoor optical cables, and cable materials.

With an eye on global markets, Henan Shijia Photons Technology is in the process of building a manufacturing plant in Thailand. "We're setting up production centers overseas. Our manufacturing subsidiary in Thailand is currently under development, and we anticipate commencing production in the second half of this year," Wu explained.

Chery CEO Yin Tongyue echoed the call for self-reliance. In a separate report by Reuters, Yin stressed that Chinese automakers must go beyond sales achievements to concentrate on technological innovation, building a reputation for quality, and fulfilling social responsibilities.

"To evolve from being a large automotive market to a robust one, it's insufficient to rely solely on sales volume or scale," stated Yin, who is also an NPC delegate. "We also need to cultivate globally recognized Chinese brands that embody innovation and quality."

Also read: Malaysia-bound Xpeng to launch cheaper sub-brand in China next month; moves into BYD's space with BEVs starting from ~RM 65k