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Factbox-Chinese electric vehicle investment plans in Thailand – Yahoo Canada Finance

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(Reuters) – Chinese electric vehicle manufacturers are pouring into Thailand, having committed to invest $1.44 billion in production facilities in Southeast Asia’s biggest automaking hub that has long been dominated by Japanese companies.

This new wave of investment has been backed by Thailand’s government, which has rolled out incentives and courted Chinese firms, with a target to convert about 30% of the country’s annual vehicle production into EVs by 2030.

INVESTMENTS UNDERWAY

China’s Great Wall Motor made an early punt on Thailand in 2020 when it acquired a factory from General Motors , where it will spend 22.6 billion baht ($647.38 million) turning it into a regional production centre for EV and hybrid cars.

The automaker will start producing its popular compact Ora Good Cat EV in Thailand next year, and is also bringing in its subsidiaries MIND Electronics, HYCET and Nobo Auto that make electronics, powertrains and seating.

Chinese rival SAIC Motor, which owns MG Motor and has a partnership with Thai conglomerate Charoen Pokphand Group, launched its first EV in the country in 2019.

It is investing 500 million baht to expand its existing plant for EV parts and battery manufacturing, the company said in April.

Chinese EV giant BYD is investing 17.9 billion baht to set up a new facility in Thailand that will start producing 150,000 passenger cars per year from 2024, some of which will be exported to Southeast Asia and Europe.

China’s Hozon New Energy Automobile is also working with Thailand’s Bangchan General Assembly to locally produce the electric NETA V model starting next year.

IN THE PIPELINE

Several deals are also in the pipeline, according to the Thailand Board of Investment (BOI), which has been pursuing Chinese automakers.

State-owned Chongqing Changan Automobile, which has partnerships with Ford and Mazda, will invest 9.8 billion baht to set up its first right-hand drive EV factory outside China, according to the BOI.

GAC Aion, a subsidiary of state-owned automaker Guangzhou Automobile Group (GAC) is planning to invest more than 6.4 billion baht to produce EVs in Thailand, the BOI said.

China’s Chery Automobile, which first rolled out a self-developed EV in 2009, is “very interested” to invest in Thailand and plans to enter the market early next year, according to the BOI.

Chongqing Changan, GAC and Chery did not respond to requests for comment on their plans for Thailand.

Chinese automaker Geely is also in the early stages of planning an entry into Thailand, Reuters reported in May, including weighing models for import and local manufacturing.

RISING POPULARITY

The influx of Chinese models appears to be helping to boost the popularity of EVs in Thailand, the second-largest car market in Southeast Asia.

In the first half of 2023, over 31,000 EVs were registered in Thailand, more than three times the number for all of 2022, the BOI said, citing industry data.

The price gap between EVs and combustion engine cars has also narrowed, in part because of government subsidies.

The cheapest variant of Great Wall’s Ora Good Cat – Thailand’s best-selling EV last year – currently costs around 828,500 baht, while Hozon’s NETA V is priced at 549,000 baht, according to company websites.

On Toyota’s Thailand website, the Corolla Altis is priced at 894,000 baht and the Yaris Ativ at 549,000 baht.

($1 = 34.9100 baht)

(Compiled by Devjyot Ghoshal in Bangkok; Editing by Jamie Freed)

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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