On July 17, Chinese electric vehicle maker GAC Aion celebrated the grand opening of its new factory in Rayong, Thailand, marking a significant milestone in its Southeast Asian expansion. This event comes hot on the heels of BYD’s recent vehicle launch in Thailand, highlighting the rapid inroads Chinese automakers are making in this key market.
The Rayong factory aligns perfectly with Aion’s strategy of emphasizing rapid output and adaptive scaling. Initially set to produce 50,000 units annually, the facility has plans to double its capacity to 100,000 units. It will manufacture several GAC Aion models, including the second-generation Aion V and Aion Y Plus, positioning itself as a crucial hub for Aion’s operations in Southeast Asia.
Traditionally, automakers launch new models domestically before gradually introducing them to international markets, a process that involves extensive localization. However, GAC Aion has upended this approach by achieving a simultaneous global launch of the second-generation Aion V, thanks to cutting-edge technology from its lighthouse factory. Essentially, lighthouse factories are facilities that integrate high-tech solutions to maximize efficiency and operational benefits.
The Thai factory utilizes key production techniques to minimize waste and establish a highly efficient quality, cost, and delivery (QCD) system. It’s a data-driven facility, leveraging technologies such as big data, artificial intelligence, internet-of-things, and vision modeling. This enables real-time optimization of production schedules, ensuring smooth and efficient operations.
To ensure the reliability of its vehicles, the factory employs machine vision technology for comprehensive quality control, alongside non-destructive techniques like ultrasonic flaw detection and 3D vision tracking. This combination significantly reduces defects, ensuring high-quality products for Thai consumers.
Moreover, the Rayong facility stands out as Thailand’s only integrated photovoltaic energy storage and charging facility, underscoring GAC Aion’s commitment to sustainable development by reducing energy consumption.
As the global automotive market undergoes electrification, Chinese automakers are rapidly building competitive advantages. Overseas expansion is now imperative. In 2023, China’s exports of EVs, lithium-ion batteries, and solar cells surpassed RMB 1.06 trillion (USD 145.7 billion) for the first time, marking a 29.9% increase. In the first half of this year, China’s automotive exports reached 2.793 million units, a 30.5% year-on-year increase.
While enthusiasm for international expansion is high, challenges remain. Navigating an uncertain global market and addressing localization issues require more than just exporting products. A systematic and robust approach to overseas expansion is essential, highlighting the strategic importance of GAC Aion’s new factory in Thailand.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Han Yongchang for 36Kr.