Continental AG, the German tyre manufacturing giant, has secured approval from Thailand's Board of Investment (BOI) for a $400 million investment to significantly expand its tyre production facility in the country. This expansion is set to boost Continental's output to 7.8 million tyres annually and create 600 additional jobs, bringing the company’s total workforce in Thailand to 1,500 employees.
Thailand, the world’s second-largest tyre producer after China, has been an essential part of Continental’s global manufacturing operations for the past five years. The facility sources locally produced rubber and other raw materials, manufacturing tyres for motorcycles, light trucks, passenger cars, and increasingly, electric vehicles.
“This major expansion by Continental also reinforces Thailand's status as an automotive industry hub,” said BOI Secretary General Narit Therdsteerasukdi. The country has long been a regional centre for major automakers and has recently ramped up efforts to attract investment from electric vehicle (EV) brands as part of its broader push towards greener technology.
The investment marks a significant step forward for Continental as it seeks to capitalize on Thailand’s growing automotive sector, which serves as a base for both traditional vehicles and the rapidly expanding EV market. With its new production capacity, Continental aims to meet increasing demand across Asia, further solidifying Thailand’s role as a key player in the global tyre and automotive industries.
In addition to contributing to Thailand’s economy, the expansion aligns with Continental's broader strategy to strengthen its position in Southeast Asia, a region that is becoming increasingly critical to the company’s global operations. The move is also seen as a response to rising demand for EVs, which are gaining popularity across global markets, including in Thailand.
With this latest investment, Continental not only reaffirms its commitment to the Thai market but also underscores the importance of Southeast Asia as a vital region for the future of the automotive industry. The company, which has a global presence in over 59 countries, continues to innovate and adapt to the shifting dynamics of vehicle production, particularly in the electric vehicle sector.
