BMW Group Manufacturing Thailand

BMW Group Manufacturing Thailand has announced that it will be looking to increase its completely built-up (CBU) exports for 2016 and the following year. The Group aims to ship 10,000 cars annually, mainly to China, according to a report by the Bangkok Post.

The increase in shipments is in line with the company’s international growth strategy. In September 2015, BMW’s Munich headquarters announced it will invest 1.1 billion baht into expanding the Amata City industrial estate factory in Rayong, which is operated by BMW Manufacturing Thailand.

With the expansion being completed earlier this year, the factory now has an annual production capacity that is double of before, capable of producing 20,000 BMWs and MINIs. Additionally, motorcycle production has also increased from 1,000 to 10,000 per year

The Rayong factory has been shipping BMW cars to Malaysia since 2006, and only begun exporting motorcycles to China beginning from last year (1,000 units shipping to Malaysia and China). Both countries are the only international export destinations for the factory until now.

According to CEO and president of BMW Thailand Matthias Pfalz, the majority of car shipments from the factory for 2016 will be two BMW SUV models – the X3 and X5. The factory’s production catalogue comprises eight BMW models – 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series, X1, X3, X5. It also makes the MINI Countryman.

On the BMW Motorrad side, the F700GS, F800R, F800GS, F800GT, S1000R, S1000RR, R1200GS and R1200GS Adventure is produced there as well. This makes the Rayong facility the only site in BMW’s global network with full operations for all three brands.

Pfalz also added that the group had set up an international purchasing office in Thailand to ship auto parts and components to 30 factories in 14 Asian countries. In the future, the group also plans to assemble BMW’s plug-in hybrid electric vehicles for the first time, with the X5 xDrive40e being the first (currently imported).

In 2015, the Group posted record sales figures of 8,768 cars, a gain of 5% from the previous year. BMW passenger vehicles attributed 7,751 units (up 4%), while MINI saw 1,017 cars delivered, a 10% increase. BMW Motorrad registered 1,280 motorcycles sold, an impressive 83% jump from the previous year.