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Thailand To Lead In EV Battery Manufacturing And Assembly

Thailand To Lead In EV Battery Manufacturing And Assembly

Thailand’s assembly and output of Electric Vehicle (EV) batteries are predicted to reach 430,000 units by 2023, according to Kasikorn Research Center (K-Research). As such, Thailand will be responsible for three percent of global EV battery production by 2023 and will be placed top four in Asia. Moreover, sales of the three types of EVs—hybrids, plug in hybrids and battery EVs in Thailand will account for 25 percent of the total car market.

The research centre said, “The EV market is expected to increase significantly from 2019 as many car manufacturers have applied for the Board of Investment’s (BoI) incentives to localise EV assembly.”

With implementation of the government’s EV scheme to focus on hybrid and plug-in hybrid EVs, investment flow for EV battery assembly will follow. Furthermore, car manufacturers successfully granted the BoI incentives are required to carry out their plans within three years, by 2021. The assembly of battery EV’s depend on the coverage of EV charging stations, while hybrid EVs may extend into eco-hybrid cars. Sales of hybrid EVs will see significant increase since they have already been available. Car manufacturers like Toyota and Mercedes-Benz will be localising battery assembly, which will drive assembly manufacturing for EV batteries.

Thailand will be a hub for EV battery exports. 260,000 units of the 430,000 total battery output by 2023 will be supplied to the domestic market, while 40 percent or 170,000 batteries will be exported. Battery EVs will mainly be delivered to Japan, Oceania, Singapore and Malaysia due to rising income growth and government’s support for EV facilities. Furthermore, with the Japan-Thailand Economic Partnership Agreement, Thailand is set to become the original equipment manufacturer EV battery hub for Japanese car manufacturers.

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Thailand Remains As Production Base For Toyota

Thailand Remains As Production Base For Toyota

Toyota Motor Thailand announces that the company will invest an estimated 10 billion baht annually in Thailand’s automotive industry and continue to use Thailand as a production base for both domestic and export markets. This investment will build confidence among foreign investors.

Previously, Toyota has successfully obtained privileges with total investment of 19 billion baht for production of hybrid electric vehicles (EV) from the Board of Investment (BoI) in 2017. According to Ninnart Chaithirapinyo, the board chairman at Toyota motor Thailand, the company plans to localise manufacturing of eco-friendly vehicles and has submitted an investment plan worth 10 billion baht for the government’s EV scheme. Furthermore, the company has also submitted applications with BoI to produce plug-in hybrid and battery EVs in January. Mr Ninnart said that Toyota will be manufacturing plug-in hybrids over the next three to four years and EVs in 2023.

Toyota also plans to assemble 7,000 hybrid EVs a year, making 70,000 batteries for EVs and producing other parts such as doors which totals up to 9.1 million units. Furthermore, the company is looking into a project next year to recycle the cells of hybrid car batteries which can be used for solar rooftops.

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Mercedes-Benz Thailand To Start Local Manufacturing Of Electric Vehicles

Mercedes-Benz Thailand To Start Local Manufacturing Of Electric Vehicles

Mercedes-Benz plans to start local assembly and sales of battery EVs, following application to assemble battery EVs for Thailand Board of Investments (BOI) incentives covering all global electric vehicles (EV) line-ups—plug-in hybrid EVs, battery EVs and lithium-ion batteries.

Previously in early 2016, Mercedes-Benz decided to localise its assembly line of plug-in hybrid EVs and in 2017, joined the government’s EV scheme. In early 2018, the company also applied for manufacturing expansion of plug-in EVs (worth 607 million baht).”We have begun marketing our plug-in hybrid EVs in the market and have invested further to produce lithium-ion batteries, so it would not make any sense if we did not bring our battery EV technology to the country,” said Frank Steinacher, vice-president for sales and marketing of Mercedes-Benz.

In March 2018, Stuttgart-based parent firm Daimler AG has localised assembly of batteries for plug-in hybrid EVs at its Samut Prakan plant with an investment of 3.9 billion baht. However, Mercedes-Benz will become the first car brand to produce the batteries locally. Furthermore, Mr Steinacher announced that Mercedes-Benz will be bringing the EQC that was launched last September under the EQ Electric Intelligence initiative into the local market this year as the first battery EV sold in Thailand.

Mercedes-Benz is also emphasising the EQ families of EQ Power (plug-in hybrid EV), EQ Power+ (AMG cars) and EQ Boost (48-volt on-board electric system) in the market., with all three platforms being assembled at the Samut Prakan plant.

According to Roland Folger, president and chief executive of Mercedes-Benz Thailand, the overall luxury car market grew from 27,000 units sold in 2017 to 32,000 in 2018, as each distributor was competitive with new cars and technologies. Mercedes-Benz set a record for sales with 15,785 vehicles, a 9% rise from 2018 and has launched 16 models in Thailand in the last year. With new luxury players entering the market, Mr Folger expects that at least 20 new models are expected to be launched in Thailand and total dealers to come up to 36 in 2019.

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