National carmaker Proton and its Chinese partner Geely are considering setting up a plant in Thailand to produce electric vehicles. This is a statement made by Thai Prime Minister Srettha Thavisin on Wednesday who has visited Malaysia as part of a regional tour to seek investment.
After talks with Malaysian Prime Minister Datuk Seri Anwar Ibrahim, a meeting will be held between the two leaders to figure out the next step “and move forward quickly”. However, no further details were provided regarding the potential investment.
Currently, Geely holds a 49.9% stake in Proton, while DRB-Hicom Berhad owns the remaining 50.1%. The news of the two parties setting up a plant in Thailand is surprising, to say the least.
This is due to the companies having formalised a deal to develop the Automotive High Tech Valley (AHTV) in Tanjung Malim, Perak. According to Anwar, Geely will also be investing RM32 billion in this project, making Malaysia its right-hand drive (RHD) export hub.
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Just last month, Proton and Smart Automobile signed a Memorandum of Agreement (MoA) in order to look into the possibility of assembling Smart vehicles at Proton’s Tanjung Malim plant.
Additionally, Geely also said that it is cancelling its plans of setting up EV production in Thailand back in June, which is the literal opposite of the deal Anwar and Srettha are cooking at the moment.
There are many questions, but not many answers. However, the main question is, has Geely’s plans changed? Only time can tell.
RELATED: Geely to invest RM32 billion, making Malaysia its RHD export hub – Anwar
