Mercedes-Benz has begun local production of plug-in hybrid-batteries in Thailand with the opening of its new battery plant, which is located at the company’s vehicle manufacturing plant in Samut Prakan.
The new facility, which sits on a 50,000 square metre site and has a 100-strong workforce, was announced last year when the automaker – together with local partners Thonburi Automotive Assembly Plant (TAAP) and Thonburi Energy Storage Systems (TESM) – said it was investing over 100 million euros (RM483 million) in expanding production operations in the country.
Output will serve localised needs in the production of the automaker’s plug-in hybrids, of which the C- and E-Class versions are in particular demand, but the plant will be able to make batteries for full electric vehicles in the future, according to a previous report. While no mention of production capacity was made, a figure of 5,000 units was indicated previously, and this can easily be doubled according to demand.
The new facility is the latest addition to the company’s global battery production network, which already has plants running in Kamenz, Germany, with Beijing also going online this year. With new plants in the United States, Poland and Germany set to begin operations at the beginning of the next decade, the network will eventually consist of nine factories at seven locations on three continents.
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Comments highlight Malaysia’s challenges in attracting automotive investments, citing bureaucratic red tape, corruption, and lack of strong policies as deterrents compared to Thailand, which is seen as more investment-friendly with better infrastructure and consistent policies. Many believe Thai workers are more hardworking and productive than Malaysians, contributing to Thailand's attractiveness. There’s also criticism of local management, lack of expertise, and government interference negatively impacting industry growth. Some comments express regret over Malaysia's policies, such as affirmative action, which hinder competitiveness. Several commenters note that international automakers like BMW, Tesla, and Mercedes prefer Thailand for battery and car production due to political stability, lower costs, and clearer regulations. Overall, there’s a pervasive sentiment that Malaysia is falling behind other Asian countries in automotive industry development.