Chinese electric vehicle maker Xpeng is conducting a feasibility study on establishing a manufacturing plant in Thailand to support its export market, with a final decision expected within 1-2 years.
"Xpeng is assessing and discussing investment opportunities in Thailand, including talks with a local company," said Apiwan Singthaweesak, chief executive of Xpeng Thailand.
She said Thailand offers strong potential for battery electric vehicles (BEVs), supported by government incentives that have attracted investment from Chinese, Japanese and Western automakers.
Xpeng operates a manufacturing facility in Guangzhou, China, where it produces its flagship seven-seat multipurpose vehicle, the X9, for global shipment.
The company recently launched new models, including the EW G6 and X9, equipped with advanced technologies such as artificial intelligence chips.
Xpeng is monitoring geopolitical tensions, particularly the war in the Middle East, which has disrupted shipping in the Strait of Hormuz and driven up global crude oil and gas prices.
Rising fuel costs have increased pressure on consumers and the transport sector, but Ms Apiwan said the company sees this as an opportunity to lift EV sales as buyers look to reduce fuel expenses.
Xpeng projects total BEV sales in Thailand of 250,000 units this year, up from 120,301 units last year, a surge of 80%.
Total domestic car sales are expected to rise to 700,000 units this year, up from 621,166 units in 2025, according to the Federation of Thai Industries.
"This indicates the Thai market has strong potential for BEV growth," said Ms Apiwan.
"Many global automakers are launching new models with attractive campaigns as oil prices surge and hybrid vehicle sales slow."
Xpeng set a sales target of 6,000 units for 2026, doubling 3,000 units last year, driven largely by demand in the multipurpose vehicle segment.
The company plans to expand its retail presence, adding three new showrooms this year to its network of 20 across Bangkok and key provinces.
The 47th Bangkok International Motor Show 2026, running from March 25 to April 5, is expected to enhance BEV sales and strengthen Xpeng's foothold in Thailand's fast-growing EV market, the company added.
