Automaker Longan Starts Production in Thailand

Longan Automobile, a Chinese automaker, has officially begun production at its factory in Thailand, marking the company's entry into the Southeast Asian market. On May 15th, Longan Automobile's board of directors and Deep Blue Automobile's CEO, Deng Chenghao, attended a press conference to discuss the company's strategy and goals.

According to Jiu Huawei Rong, chairman of Longan Automobile, the company's decision to establish a factory in Thailand is driven by the country's membership in ASEAN and its position as the originator of the regional organization. Longan aims to capitalize on Thailand's favorable business environment, its rapid transition to new energy, and its well-established automotive industry chain.

Thailand's move towards embracing new energy aligns with Longan's strategic focus on electric vehicles. The company plans to introduce innovative products that cater to Thai consumers' demands for sustainable mobility.

Longan Automobile has invested approximately 100 billion Thai baht (21.7 billion RMB) in its Thailand factory so far, with a total investment of over 200 billion Thai baht (43.4 billion RMB). The plant is currently operational at a capacity of 10 million units and plans to increase production to 20 million units in the near future.

The Thailand factory will primarily produce Longan's Deep Blue and Avita brand vehicles, as well as left-hand drive models. Longan has announced plans to release two new products, including left-hand drive and right-hand drive vehicle models, along with a gasoline-powered variant, by the end of this year and early next year.

The Thailand factory is expected to be a vital component of Longan Automobile's global production network. The company aims to establish itself in Southeast Asia, particularly in Indonesia, Vietnam, and Malaysia, which will ultimately help to expand its market share globally.

Longan Automobile targets markets in East Asia, Central America, Africa, Europe, and North America, with plans to expand its presence even further into the Korean market and beyond. The company's ambitious goals include increasing its global sales target to 550 million units by 2030 and investing up to $100 billion outside of China.

Longan Automobile aims to establish a comprehensive service network in Thailand and Southeast Asia, including the establishment of local research centers focused on localization, development of domestic supply chains, and talent cultivation programs.

The market competition faced by Longan Automobile's Deep Blue model in Thailand is intense, but its innovative technology, including its regenerative drive system, offers several advantages. According to Deng Chenghao, a fully electric Longan model reduces costs while offering a unique driving experience similar to a hybrid. Furthermore, the company's automotive safety standards are also highly regarded.

Longan Automobile aims to build on these strengths by introducing advanced features like regenerative braking in its Thai production vehicles for consumers seeking sustainable mobility solutions.