Mercedes-Benz, together with local partner Thonburi Automotive Assembly Plant (TAAP), will invest over 100 million euros (RM483 million) in production operations in Thailand until 2020. The investment will go into the extension of an existing car plant in Samut Prakan and a new hybrid battery assembly plant in the area. The investment will create over 300 additional jobs.
The 48,000 square metre hybrid battery factory will be the first of its kind in Thailand and the sixth facility for Daimler across the globe. There are three of such battery plants in Germany and one each in the US and China. It will also be the first hybrid battery production site in ASEAN.
“The electric initiative in the flexible and efficient global production network of Mercedes-Benz Cars is progressing well and with ultimate speed. As part of our strategy, we are now preparing for the future of electromobility in Thailand together with our partner TAAP,” said Markus Schafer, member of the divisional board of management, Mercedes-Benz Cars production and supply chain.
“With our highly standardised and scalable battery production concept we are able to start operations in any region at short notice and at the right size,” he added.
Local production of the lithium-ion batteries will start by 2019. “All locally-assembled batteries will serve Mercedes-Benz’s PHEVs in the local market and we can beef up our capacity once local demand expands,” said Andreas Lettner, CEO of Mercedes-Benz Manufacturing Thailand.
TAAP, which started assembling Mercedes-Benz since the W123, currently rolls out the C, E, S, GLE, GLA, CLA, GLC, GLC Coupe and C-Class Coupe models; and part of the investment will result in a “substantial increase in the production portfolio, adding new models.”
Last year, the premium brand achieved double-digit growth and its highest ever sales in Thailand, with 14,484 units sold. Thai-assembled PHEVs – the C 350e, E 350e, S 500e and GLE 500e SUV – accounted for 40% of total sales.
In January, president and CEO of Mercedes-Benz Thailand Michael Grewe announced that the company had applied for Thailand Board of Investment (BoI) privileges for both PHEV and full EV categories. Fellow German premium brand BMW, which also assembles and sells PHEVs in Thailand, has similar plans to localise hybrid battery production. BMW’s battery plant is also scheduled to come online next year.
Thailand has of late put in efforts to attract carmakers to build green cars such as hybrids, PHEVs and EVs in the country. Last year, the 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 with the Toyota C-HR Hybrid this month.
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What we get when offering zero tax for hybrid vehicles? cheaper premium vehicle and millions of forex outflow from purchasing luxury vehicle? In the end big investments still go to Thailand.
Thailand’s gain is our loss.
No worries. They can stay there. Battery manufacturing is one of the most toxic and hazardous there is. Risk factor is many times higher than processing rare earth materials. Tomyam can keep it, no problemo.
MITI & MAI will launch new NAP by 1st half of 2018. Good job!
https://paultan.org/2017/12/20/nap-2014-eev-review-to-be-finalised-next-year-honda-city-price-dropped-from-rm90k-to-rm75k-madani/
New NAP not covered battery production. Li-ion is one of the most volatile, see Note7.
Just make sure we didn’t get cheated like when Honda malaysia introduced new jazz price from 100k down to 75k, it was first because of hybrid and then the low spec jazz with steel rims.
Toxic? As if we’re not doing any of those toxic stuffs like aluminium smelting, lynas etc. If battery production is toxic, then why do US allow Panasonic to setup factory there (with Tesla)? Better blame it on our government lack of enforcement and knowledge when it comes to industrial waste disposal.
oops another millions millions to land of smiles, can we have some here too?
We alredi assembles the PHEV cars here.
Nope, unless you go there and apply for the job. If you have a skill, then you can get the position.
It is time for Malaysian to migrate for job hunting.
Job migration alredi started years ago. Many local grads took up 3D jobs (dirty, dangerous & difficult) in manufacturing, construction and plantation sectors in Korea, Oz & Saudi.
Pls response fast and smart on this our dear gov
Gov alredi responded with Industrial Revolution 4.0 Blueprint. Pls come out of cave.