It’s somewhat ironic that in the age of EVs, the good old conventional non-plug-in hybrid car is having a renaissance of sorts. It’s the entry level to electrification, the first step of the ladder to full electric; it’s supposed to be outdated.
No one expected to see headlines such as “Skyrocketing Toyota Prius Sales Proves People Want Hybrids, Not EVs” (Motor1) and “Toyota was right about hybrid cars all along. Detroit owes it an apology” (Business Insider) in 2024. This was not in the script. Akio Toyoda was mocked, now he’s sitting smug.
Closer to home, Thailand – which wants to recreate the ‘Detroit of the East’ magic with EVs – is dishing out incentives for hybrid manufacturing, and Chinese giant SAIC Motor is set to take the carrot. Local JV company SAIC Motor-CP and MG Sales Thailand are set to unveil plans to produce hybrids in Chon Buri by 2025.
According to the Bangkok Post, MG is looking for a new business opportunity in Thailand, where hybrid sales have increased rapidly after the country’s Board of Investment (BoI) launched an investment incentive package to promote hybrid, or HEV, manufacturing.
“We are considering an investment budget for the HEV production project, which will be finalised soon,” Pongsak Lertruedeewattanavong, VP of MG Sales Thailand told the publication.
The report said that MG was among the first carmakers to acknowledge the growth potential of Thailand’s EV industry, investing 30 billion baht to bolster its EV business in the nation over the past decade. The company’s Chon Buri factory has an annual production capacity of 100,000 cars, including full EVs and ICE-powered cars. The just-launched MG3 Hybrid+ is for now a CBU import from China, but there are plans to produce the B-segment hatchback in Thailand. It’s priced from RM72k.
Carmakers eyeing the excise tax cut incentive for hybrids are required to invest at least three billion baht to produce HEVs in the Thailand. Up to 40% of HEV components must be sourced from local vendors, in line with the government’s policy of supporting the country’s automotive supply chain.
The demand for HEVs is certainly there among Thais. In the first half of 2024, hybrid sales in the country jumped 69.6% year-on-year, versus a 6.9% gain for EVs, according to the Federation of Thai Industries. Over in Malaysia, hybrids are available, but aren’t that popular due to the low price of petrol. However, the end is near for blanket subsidy of RON 95 – it’s just a matter of when the government will pull the trigger.
By the way, MG Malaysia is set to unveil the MG5 GT C-segment sedan and Proton X70-rivalling HS SUV tomorrow – full details here. The ICE-powered duo will join full EVs MG4 and ZS in local showrooms.
GALLERY: MG3 Hybrid at 2024 Gaikindo Indonesia International Auto Show
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