Thai Cabinet Approves Replacing German Engines with Chinese CHD620 Engines and Purchase of 4 Gripen Fighter

06 Agustus 2025

A scale model of the proposed S26T attack submarine developed for Thailand (photo: CSOC)

The Cabinet has approved a contract amendment for the submarine, replacing the German engines with Chinese CHD620 engines, after a 7.7 billion baht payment was already made.

On August 5, 2025, reporters reported that the Cabinet approved a contract amendment for the Yuan Class S26T submarine project, which Thailand signed a government-to-government (G2G) agreement with China. This includes replacing the original German MTU396 engine with a Chinese CHD620 engine, and extending the ship's construction time by another 1,217 days.

Reporters stated that the Yuan Class S26T submarine procurement project, for which the Royal Thai Navy signed a contract with CSOC of the People's Republic of China to build the ship in 2017, was hampered by China's inability to procure the German MTU 396 engines specified in the contract, resulting in the shipbuilding being suspended in 2021.

Currently, 64% of the process has been completed. 10 installments of the total 18 installments, totaling 7.7 billion baht, have been approved for payment. However, 40% of the remaining 5.5 billion baht is still outstanding. (Khaosod)

Cabinet approves purchase of 1 squadron of 4 Gripen aircraft

On August 5, 2025, reporters from Government House reported that the Cabinet approved the purchase of a squadron of four Gripen aircraft along with submarines, as proposed by the Air Force and Navy.

For the first phase of the procurement project for the purchase of four Saab JAS 39 Gripen fighter aircraft, or Gripen E and F models, from Sweden, valued at 19.5 billion baht, as proposed by Deputy Minister of Defense Gen. Nattapol Nakphanit, in accordance with the needs of the Royal Thai Air Force (RTAF), after the details of all three phases of the procurement process were completed.

Saab Gripen E/F fighter (infographic: RTAF)

It was reported that the Gripen procurement project was scheduled to be submitted to the Cabinet last week, but due to document issues, the proposal was moved to August 5th for approval.

Reporters noted that previously on June 4th, Air Chief Marshal Panpakdee Pattanakul, Commander-in-Chief of the Royal Thai Air Force, stated that Thailand's F-16 fighter jets would be gradually decommissioned between 2028 and 2035 after 37 years of service. Failure to procure replacement aircraft would impact national defense readiness. The Royal Thai Air Force is therefore required to procure replacement fighter jets under the Fighter Attack Aircraft Replacement Project.

The Royal Thai Air Force has jointly concluded that it will purchase Saab JAS 39 Gripen (Gripen) fighter jets, the latest models, from Sweden, one squadron, totaling 12 aircraft, worth 60 billion baht, from a total of 20 selections.

The aircraft procurement format is through the Swedish government, or G2G. The project is divided into three phases within a 10-year timeframe (by 2035). Phase 1 includes four aircraft, valued at 19.5 billion baht, to be delivered by 2029 (4 years).

The Royal Thai Air Force's Facebook page posted the message "Saab JAS 39 Gripen E/F... Ready for Take Off." The Cabinet has approved the purchase of replacement Saab JAS 39 Gripen fighter jets for the Royal Thai Air Force, strengthening its ability to maintain sovereignty over the airspace.

Reporters reported that Air Chief Marshal Panpakdee Pattanakul, Commander-in-Chief of the Royal Thai Air Force, is preparing to travel to sign a contract for the purchase of four new Gripen fighter jets between August 23-27.

However, the new squadron of Gripen fighter jets has become an issue after the Royal Thai Air Force used its in-service Gripens to protect sovereignty along the Thai-Cambodian border. (Khaosod)