TEV signs MoU to make electric buses locally

Privately owned Thai Electric Vehicle Co (TEV) is looking to manufacture electric buses in Thailand, likely in 2018.

To pave the way for electric bus production in Thailand, the company yesterday signed a memorandum of understanding with China’s leading truck maker Beiqi Foton Motor to transfer bus assembly technology to Thailand. The buses will be produced under the TEV brand.

Managing director Somboon Pitayarangsarit said prior to production, TEV will import 100 buses from China to be sold locally next year, mainly to the Bangkok Mass Transit Authority, state enterprises and tourism-related companies.

The imported buses include 12-metre plug-in hybrids, 10.5-metre battery electric models and 6.5-metre battery options, priced at 5 million, 8 million and 4.5 million baht, respectively.

Each bus can travel between 20-60 kilometres per charge.

Beiqi Foton Motor has a technology development partnership covering all platforms of EVs with Daimler from Germany and Cummins from the US.

TEV was founded in 2015 by a group of 30 Thai auto parts and supporting companies to capitalise on the technological change, the public need and the government policy promoting green public transport. It has paid-up capital of 40 million baht.

Mr Somboon said TEV shareholders now operate four assembly plants and 30 parts production factories in Ratchaburi. They plan to produce up to 1,200 buses per year for the domestic market.

He said TEV’s bus assembly aims to use local content for about 25% of production.

“Although the Board of Investment is considering waiving the tariff on imported parts, we’re trying to raise local content to over 50% of production within five years,” said Mr Somboon.

He said TEV and Foton are doing a feasibility study to construct a battery assembly factory for TEV buses.

EVs are among the government’s 10 targeted industry clusters, as Thailand is one of the world’s biggest manufacturing bases for the automotive industry.

In Thailand, there were 70,285 hybrid EVs and plug-in hybrid EVs last year for all vehicle types, the majority registered as personal cars.

Finance permanent secretary Somchai Sujjapongse said recently the Finance Ministry is ready to offer tax incentives to encourage carmakers to assemble EVs in Thailand. The ministry does not want to support the import of completely built-up electric cars, as it would not aid domestic production, he said.

The Excise Department imposes a 10% tax on EVs, well below the 14-35% charged on other types of vehicles.