Thailand EV Manufacturing Expansion Gains Momentum as KGEN and Chery Scale Production

King Gen Public Company Limited (KGEN) announced on June 23, 2026, that its joint venture vehicle manufacturing facility with Chery Group in Rayong, Thailand, has officially entered full-scale production. The plant is manufacturing electrified vehicles under the Omoda & Jaecoo brands and represents a significant step in expanding the country's role in regional vehicle production. The operation is designed to support growing demand for electrified mobility solutions while strengthening Thailand’s industrial base and export capabilities across ASEAN markets.

Production Ramp-Up Targets Through 2027

The Rayong facility is expected to substantially increase output during the second half of 2026. Production is projected to reach 40,000 vehicles during H2 2026 before achieving its planned annual manufacturing capacity of 80,000 units by 2027. Vehicles produced at the plant will serve both local customers and international markets, reinforcing the facility’s importance within the broader regional supply chain and supporting Thailand’s ambitions to become a leading center for electrified vehicle manufacturing and exports.

Key Requirements for Thailand’s EV Industry Development

KGEN identified three important factors that could further enhance Thailand’s competitiveness as an EV manufacturing and export hub in ASEAN. These include maintaining Thai ownership of at least 51%, establishing a Thai-owned or national vehicle brand, and ensuring that locally produced automotive components account for 41% of a vehicle’s total parts content. According to the company, these elements can help increase domestic value creation while strengthening the country's long-term automotive ecosystem.

KGEN Plans Ownership Expansion

At present, Chery remains the majority shareholder in the manufacturing venture, while KGEN owns a 43.7% stake. The company intends to raise its ownership position to 60% during July and August 2026. In addition, KGEN plans to expand its participation in the Omoda & Jaecoo distribution business by increasing its stake from 7% to 25%. These planned investments demonstrate KGEN’s commitment to strengthening its influence across both vehicle production and distribution operations.

Future Expansion Plans in Rayong

As manufacturing volumes grow, Chery is evaluating additional investments in Rayong. The company is considering the construction of a second vehicle production facility along with an automotive parts manufacturing plant. Such developments would further enhance production capacity, support localization efforts, and contribute to the expansion of Thailand’s automotive supply chain. The proposed investments could also create opportunities for greater integration of locally sourced components within future vehicle programs.

KGEN Expects Return to Profitability

KGEN expects its financial performance to improve beginning in the second quarter of 2026. The company forecasts sales exceeding THB 20 billion during 2026 and believes the full benefits of its investments will become more visible from 2027 onward. As production volumes rise and ownership positions increase, KGEN anticipates stronger earnings contributions from both manufacturing and distribution activities, supporting its broader growth strategy in the electrified vehicle sector.

Frequently Asked Questions

What is the production target for the KGEN and Chery vehicle plant in Thailand?
The Rayong manufacturing facility is expected to produce 40,000 vehicles during the second half of 2026 and reach its planned annual capacity of 80,000 units by 2027. The plant manufactures electrified vehicles under the Omoda & Jaecoo brands and serves both domestic and export markets. The expansion is part of a broader strategy to strengthen Thailand’s position as a major EV manufacturing and export hub within the ASEAN region while supporting future growth in vehicle demand.

How is KGEN increasing its involvement in the joint venture?
KGEN plans to increase its ownership stake in the manufacturing venture from 43.7% to 60% during July and August 2026. The company also intends to raise its shareholding in the Omoda & Jaecoo distribution business from 7% to 25%. These investments are expected to enhance KGEN’s participation across vehicle production and sales operations while supporting its long-term growth objectives and anticipated return to profitability.