Thailand’s EV industry grows by 81% in 4 years
The Thailand Board of Investment announced that Thailand has received more foreign direct investment supporting the country’s growing electric vehicle production ecosystem.
According to the Electric Vehicle Association of Thailand, the number of companies that are part of Thailand's electric vehicle industry has risen significantly since 2015, from 76 to 420 in 2019. This increase represents an increase of over 81% growth in the number of companies operating in Thailand's electric vehicle ecosystem.
Thailand is the largest producer of vehicles in the ASEAN region and the 11th largest automotive producer in the world, producing more that 2.17 million units in 2018. With a population of over 645 million consumers in ASEAN alone, the industry is projected to grow even more as demand across the rest of Asia increases.
Electric vehicle battery production is growing in Thailand, with manufacturing plants operated by SAIC, Honda, Toyota and a recently announced Mercedes production facility.
“We are pleased to welcome the location of a Mercedes-Benz battery production facility to the Bangkok region,” said Vorawan Norasucha, Director of the New York office of the Thailand Board of Investment. “The new Mercedes facility is the third of its kind in Mercedes' global battery production network, designed to produce plug-in hybrid automotive batteries.”
With the investment, Mercedes-Benz and its partners are responding to high demand for electric mobility in Thailandand throughout the ASEAN region. The plant is a welcomed addition to Thailand's automotive ecosystem, as the country makes efforts to shift toward carbon neutral mobility solutions.
“Thailand is making great progress in the area of sustainable mobility,” added Ms. Norasucha,”We offer a range of tax incentives for automotive companies focused on electric vehicle parts production, as well as fuel efficient vehicle assembly.”
Mercedes joins other large multinational automotive companies with energy efficient vehicle operations in Thailand. Toyota, Honda, Nissan, Mazda, Mercedes, BMW,and Audi produce hybrid, battery powered and plug-in hybrid electric vehicles in Thailand.