BMW to produce PHEV batteries in Thailand in 2019

BMW to produce PHEV batteries in Thailand in 2019

Thailand, already a leader in pick-up truck and small car production, has of late put in efforts to attract carmakers to build green cars such as hybrids, plug-in hybrids (PHEVs) and full electric vehicles (EVs) in the country.

Last year, Thailand’s Board of Investment (BoI) approved promotional privileges for carmakers. Market leader Toyota was the first to apply for and receive the BoI privileges under the hybrid category, and it will be the first to roll out a new model under the scheme in early March with the Toyota C-HR Hybrid.

PHEVs are a forte of premium brands, and BMW has now become the second German carmaker to apply for the BoI’s PHEV incentives, the Bangkok Post reports. BMW also plans to localise assembly of PHEV batteries in Thailand in 2019. Rival Mercedes-Benz announced that it was applying for the assembly of PHEVs and EVs at its joint venture plant in Samut Prakan earlier this month.

Plug-in hybrids in the premium segment are gaining ground in Thailand – sales of BMW’s iPerformance PHEVs rose by 269% last year to 10,020 units, representing 13% of all BMWs sold in the country. That’s third behind Scandinavia at 26% and Malaysia at 56% of total BMW sales. Like in Malaysia, the 330e, 530e, X5 xDrive40e and 740Le sold in Thailand are locally assembled for the domestic market, with batteries imported from Europe.

“We are making a decision about the localisation of PHEV batteries, and scheduling the manufacturing next year. It can be allocated to our Rayong plant or we may find new partners,” said Stafan Teuchert, president of BMW Group Thailand, pointing out that BMW’s Thai plant is fully-owned by the carmaker, unlike in Malaysia and Indonesia.

In 2017, BMW Thailand produced 20,002 cars, 60% of which were exported to China. The factory also assembles BMW Motorrad motorcycles and 2,209 bikes rolled out from Rayong last year. Of all the R1200 GS, F700 GS and F800 GS made, half were exported to China, Malaysia, Vietnam and the Philippines.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Proton Oh Proton on Jan 30, 2018 at 9:13 pm

    Again, we have lost to Thailand!!!!!

    Like or Dislike: Thumb up 22 Thumb down 1
  • Good effort by the Thai Board of Investment…goes to show that being focused in objective and pragmatic, as well as objective, in dealing with major foreign car manufacturer…Thailand’s motor industry has continued to grow from strength to strength…A pity really, when Malaysia has and existing electronics manufacturing eco-system that would enable large auto manufacturer to assemble their vehicle hybrid batteries in Malaysia…But due to favoritism, flip-flo policies and colluded price fixing in concert with the local ministry, coupled with a small market with high bureaucratic barriers of entry, major manufacturer will invest in countries that are favourable to their business model…and I guess Malaysia will play second fiddle for a foreseeable future…..Malaysia Boleh..

    Like or Dislike: Thumb up 3 Thumb down 0
  • Semi-Value (Member) on Jan 31, 2018 at 2:15 pm

    syabas negara tom yam

    Like or Dislike: Thumb up 7 Thumb down 0
  • Aiman on Jan 31, 2018 at 5:01 pm

    Ini semua salah Proton 30%…

    Like or Dislike: Thumb up 7 Thumb down 0
 

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