Mercedes-Benz Thailand (MBT) is considering applying for Thailand’s Board of Investment (BoI) incentives to produce electric vehicles in the country, the Bangkok Post reports. The deadline for EV incentive application is December 28.

“The government’s policy is crucial to beef up the population of EV cars here, as well as educating Thai motorists about EV mobility. We are committing to market both plug-in hybrid and battery EVs and diversifying all models to balance with ICE cars for local customer choices,” said MBT’s new president and CEO Roland Folger, who was once in charge of the company’s Malaysian operations.

The premium carmaker has already won privileges for two other categories: plug-in hybrids and lithium-ion batteries. Mercedes-Benz pledged to assemble 607 million baht (RM77.1 million) worth of PHEVs and 600 million baht (RM76.2 million) worth of lithium-ion batteries. The BoI approved the applications back in March.

Folger noted that the adoption of full EVs has to come with appropriate state policies and market demand. “It’s not necessary that the government invest in all charging stations nationwide or offer a cash subsidy for buyers,” he said, adding that a scheme with an expiry date would not be a sustainable policy.

In March, Mercedes-Benz and local partner Thonburi Automotive Assembly Plant announced an investment of over 100 million euros (RM475.3 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 48,000 square metre hybrid battery factory will be the first of its kind in Thailand and the sixth facility for Daimler worldwide. Currently, there are three of such battery plants in Germany and one each in the US and China. The Thai battery factory will start production next year, and will initially serve local demand.

Besides Mercedes-Benz, the other BoI incentive recipients so far are Mazda and Toyota in the regular hybrid category, plus BMW and SAIC Motor (MG) in the PHEV category, with Mitsubishi possibly next. Learn more about Thailand’s green car local assembly incentives here.

GALLERY: Mercedes-Benz EQC