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Leapmotor takes over Thai business as it plots local assembly

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Leapmotor takes over Thai business as it plots local assembly

Signalling a stronger commitment to Thailand, Leapmotor has taken direct control of its local operations. It has also started evaluating plans for setting up local assembly.

Leapmotor recently set up a new private limited company called Leapmotor (Thailand) Co., Ltd. with registered capital of 100 million baht (~€2.6 million euros). It had entered the Thai market through Phra Nakorn Automobile Co., Ltd. (PNA), which served as its importer and distributor. PNA remains involved as a dealer with two showrooms in Bangkok, one each in Lat Phrao and Ratchayothin.

According to a recent report from Bangkok Business News, Liam Liu, general manager of Leapmotor’s new local subsidiary, said that Thailand has high potential and is a market of strategic importance for the company. Citing Toyota as an example, Liu said Leapmotor wants to remain in Thailand for decades to come and establish operations spanning from manufacturing to after-sales service.

Leapmotor has begun studying local CKD assembly, and a team from China will visit Thailand in November for further assessment. The company is looking at four options for localisation: outsourcing to a contract manufacturer, establishing a joint venture with a partner, acquiring an existing plant, or building a new facility. It is eyeing an annual production capacity of 60,000 to 80,000 vehicles initially.

Liu said that Leapmotor’s board of directors has already shown strong support for its long-term business plan in Thailand. There is no shortage of funds, and the board can approve budget requests within two weeks because this is a key market offering growth potential for new energy vehicles, he added.


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