Source: Gasgoo Author: Xing Yun
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According to Thailand’s “Bangkok Post” reported that BMW Group Thailand plans to set up an electric vehicle battery factory in Thailand this year to support its electric vehicle (EV) and plug-in hybrid electric vehicle (PHEV) sales, and compete with China’s electric vehicle supply chain.
Alexander Baraka, president and CEO of BMW Group Thailand, said that the investment budget and production capacity of the new plant will be finalized in the near future, and the address will be in Rayong province. He added, “BMW also plans to invest in EV production in Rayong province, but the final decision will depend on a number of factors, including market demand and global semiconductor supply.”
Image source: BMW
On the same day, BMW Group Thailand also unveiled three BMW models, including the BMW iX2, xDrive30 and M Sport, and three MINI Cooper models, including the MINI Cooper S Countryman Highlands Edition.
Thanks to the Thai government’s policies to promote the electric vehicle industry, the Thai EV market is growing rapidly with the goal of becoming a regional center for EV production. Last week, Thailand’s National Electric Vehicle Policy Council decided to approve cash grants to local EV battery manufacturers. The Thailand Competitiveness Enhancement Fund has also provided financial support for energy storage systems.
The government’s EV policy has incentivized automotive companies to invest in Thailand, especially those from China. The expansion of China’s EV business is now causing global manufacturers in Europe, the United States and Japan to restructure their businesses, responding by offering lower-priced cars and developing after-sales services.
Baraka said, “Given that China is expanding its EV investment and supply chain in Thailand, we decided to invest in battery manufacturing.” He added that Thailand will be the first country in Southeast Asia to have a BMW EV battery production facility, having previously built plants in both China and Hungary. Now BMW wants Thailand to become an export center for its battery production.
Last year, BMW Group Thailand sold 15,477 vehicles, including those under the BMW and MINI brands, up 4 % from a year earlier. In addition, BMW motorcycles were sold at 1,079 units.Baraka said, “Our electric vehicles have a 15.5 % market share in Thailand.”
BMW Group Thailand is currently monitoring the impact of the Red Sea tensions on maritime logistics and the global supply chain. He said, “The conflict has had some short-term impact on BMW Group Thailand as some shipping of auto parts to Asia has been affected. But our parent company is able to cope with the situation.”
