Changan Auto, a Chinese automaker, will spend $285 million in a Thai factory to create 100,000 electric vehicles (EVs) per year, Thailand's Board of Investment announced on Thursday.

According to the board's secretary-general, Narit Therdsteerasukdi, the company intends to market the EVs throughout Thailand, Southeast Asia, Australia, and South Africa.

Thailand is Asia's fourth-largest auto assembly and export hub, with carmakers such as Toyota and Honda based there. The industry contributes roughly 10% of Thailand's GDP and manufacturing jobs.

"Changan's decision to invest in Thailand represents a significant milestone in promoting the country as the world's major EV production base," Narit added.

Other Chinese EV manufacturers, such as BYD, have also invested in Thai operations as domestic demand for brands such as Great Wall Motors and Tesla grows.

Chang'an automotive Co., Ltd. is a Chongqing-based Chinese state-owned automotive manufacturer. It is China's oldest automotive manufacturer, having been founded in 1862. With automobile sales of 5.37 million, 3.50 million, 3.28 million, and 2.30 million in 2021, it is now the lowest of China's "Big Four" state-owned car manufacturers, notably SAIC Motor, FAW Group, Dongfeng Motor Corporation, and Changan Automobile.