China’s Hozon New Energy Automobile has began assembling vehicles in Thailand, inaugurating its overseas factory as a part of an intensified technique to access the Southeast Asian market. The Shanghai automaker, also generally known as Neta Auto, has successfully produced the primary right-hand drive version of the Neta V-II, an electrical compact SUV, ahead of schedule at its Bangkok plant. Zhang Yong, co-founder and CEO of Hozon, highlighted this achievement, highlighting Neta’s integration into Thailand’s recent energy vehicle industry chain and the broader ASEAN region.
The company’s commitment includes establishing a comprehensive industry chain covering research and development, production, sales and after-sales service. Construction began in March, the Bangkok assembly facility, developed in cooperation with the Bangchan General Assembly, boasts an annual production capability of 20,000 units. The Neta V-II is Hozon’s inaugural right-hand drive model, specifically tailored for markets outside mainland China, especially Southeast Asia.
Neta, derived from the name Nezha in Chinese mythology, serves the budget EV segment in China, appealing to middle- and low-income drivers preferring electric vehicles to gasoline cars. Beginning exports to Thailand in August 2022, Hozon announced the delivery of over 12,000 units to the Southeast Asian country. After the primary ten months of this yr Neta’s vehicles secured a 20% share within the Thai pure electric automobile segment.
Hozon intends to expand its global sales network to 50 countries, creating 500 overseas sales and repair points. In July, the corporate also signed a preliminary agreement with PT Handal Indonesia Motor to construct an assembly plant in Indonesia, which is anticipated to be operational within the second quarter of 2024.
Hozon’s move is an element of a trend amongst Chinese electric vehicle makers searching for opportunities abroad because of pricing benefits in Southeast Asia and a desire to enter recent markets amid intense competition within the domestic market. Companies akin to Changan Automobile and BYD have also announced plans to establish electric automobile factories in Thailand and Indonesia, respectively, geared toward tapping emerging markets while allaying concerns about excess capability in China’s fiercely competitive electric vehicle market.
