BMW expanding EV assembly
Carmaker received privileges last month
BMW Group Thailand is ready to expand local assembly of electric vehicles (EVs) after the German carmaker was granted investment privileges by the Board of Investment (BoI) on July 25.
The BoI said BMW applied for production of plug-in hybrid EVs worth 700 million baht at its facility in Rayong province run by wholly owned BMW Group Manufacturing Thailand.
President Christian Wiedmann said the BoI-approved project is an expansion of BMW’s existing assembly line at Amata City Industrial Estate for plug-in hybrid EVs.
There are four plug-in hybrid models made locally: the 330e, the 530e, the X5 xDrive40e and the 740Le.
“The BoI’s benefits will go to the making of finished cars and preparation for battery-pack assembly to be further implemented in 2019,” Mr Wiedmann said without giving a detailed time frame for the expansion.
“Currently we have our team to work on this matter, as well as other applications for battery EVs and battery assembly lines, so BMW has yet to announce any plans until we come with a decision,” he said.
Battery-pack assembly is under study as BMW seeks other partners as local suppliers for BMW’s plug-in hybrid versions, but the carmaker is committed to completing the project in mid-2019, Mr Wiedmann said.
The plug-in hybrid batteries are imported from Europe at the moment.
The Rayong plant is one of BMW’s strategic manufacturing facilities. The production network comprises 30 locations and assembly facilities in 14 countries.
The local plant can make 20,000 cars for BMW a year. BMW Motorrad for motorcycles has an annual capacity of 10,000 units.
The facility also handles shipment of cars and motorcycles in Southeast Asia and China.
Separately, BMW said it remains keen on local sales of Mini cars despite the brand’s 18% contraction in sales to 344 units in the first half of 2018.
Mr Wiedmann expects sales to pick up in the second half with doubledigit growth throughout 2018 as BMW introduces many new Mini cars to stimulate the local market.
Mini Countryman used to be assembled at the Rayong plant, but Mini has been relocated to the assembly line of BMW’s partner facility in Malaysia.
Preecha Ninatkiattikul, general manager of Mini Thailand, said the Asean agreement with no tax barriers makes Mini’s retail price more competitive and attractive for Thai buyers.
The full line-up of Mini cars is available in Thailand, including imports from the Netherlands.
“We will open the 12th showroom and service centre next week in Chiang Mai to continue Mini’s expansion in Thailand,” Mr Wiedmann said.
The BoI’s benefits will go to the making of finished cars and preparation for battery-pack assembly to be further implemented in 2019. CHRISTIAN WIEDMANN President, BMW Group Thailand