According to a report by Bangkok Post, Nissan has chosen Thailand to build a new manufacturing hub for electric vehicles. This was revealed by Yutaka Sanada, who is the regional senior vice president and head of Nissan’s Asia & Oceania (A&O) operations.

The EV production hub will be Nissan’s first outside of Japan, and will cater to the local market as well as overseas shipments. “Nissan will accelerate our EV output from here,” said Sanada.

Nissan’s decision is spurred by the approval gained from Thailand’s Board of Investment (BOI) for its hybrid electric vehicle production project on July 25, 2018. Under the project, the Japanese carmaker will invest 10.96 billion baht to produce hybrid electric vehicles and batteries at a facility located in Bang Saothong in the Samut Prakarn province.

The plant will produce e-Power vehicles using local content worth over 15.92 billion baht a year. Following this, Antoine Barthes, president of Nissan Motor Thailand, said the carmaker would work with the BoI on an application for full EVs to be assembled at the facility.

However, he pointed out that while Thailand’s policies support local EV manufacturing, demand incentives are also necessary. “EV buyers should receive both financial and non-financial privileges such as cash subsidies, free parking lots or the ability to drive in bus lanes, similar to Norway, one developed country that has seen success in pushing EV demand,” said Barthes.

Nissan Motor Thailand also recently celebrated a milestone for its manufacturing operations in Thailand after exporting its one-millionth unit since it began in 1999. To date, it exports to over 115 countries, including six models: the Nissan Almera, March, Navara, Sylphy, Teana and Terra.