Thailand’s state-owned energy group PTT has announced that it will begin producing electric vehicles (EVs) in the Kingdom from 2024, doing so via its partnership with Foxconn (Hon Hai Precision Industry). It added that the joint venture company that was first announced last September has now been established.

Horizon Plus, as the JV firm is known as, will set up a factory in the country’s Eastern Economic Corridor (EEC) that will be capable of producing 50,000 vehicles a year in its first phase of operations.This will gradually extend to 150,000 cars annually by 2030, Nikkei Asia reports.

The two partners are expected to invest a combined USD1 billion to $2 billion into the venture, of which PTT has a 60% stake and Foxconn, the remaining 40%. PTT’s investment in the new company is through its Arun Plus subsidiary, while Foxconn’s interests are being represented by its wholly-owned Lin Yin International Investments.

As previously indicated, the companies plan to use hardware and software from the Mobility in Harmony (MIH) open platform developed for EVs by Foxconn, and will partner with suppliers in Thailand on other parts. According to Buranin Rattanasombat, PTT’s senior executive vice president for innovation and new ventures, the approach will cut both development times and production costs. The platform will also be made available to all automobile players in Thailand looking to accelerate their EV plans.

Thailand is aiming to have EVs accounting for 30% of its domestic vehicle production by 2030. The Thai government, which is looking to get local parts suppliers making the transition to EV component production, is hoping to encourage that movement through the PTT venture.

To promote the use of EVs in Thailand, PTT has also began a car rental service featuring EVs from various automotive brands. The national oil and gas conglomerate is also installing chargers at its petrol stations nationwide.