Mercedes-Benz mulls more BoI grants
PHEV battery privileges received
Mercedes-Benz Thailand, the local arm of the German luxury carmaker, is considering other applications under the government’s electric vehicle scheme after being granted promotional incentives for plug-in hybrid EVs (PHEVs) from the Board of Investment (BoI).
On July 25, the BoI said Mercedes-Benz had won investment privileges worth 600 million baht to assemble PHEV batteries.
Michael Grewe, president and chief executive of Mercedes-Benz Thailand, said the project is part of the company’s current investment, worth a combined €100 million (3.77 billion baht) at the manufacturing operation in Samut Prakan province.
This investment is a joint venture between Mercedes-Benz and its local partner, Thonburi Automotive Assembly Plant (TAAP), an assembler of nine MercedesBenz models in the same province.
“We are considering applying for finished EVs during the remaining months of this year,” Mr Grewe said.
The BoI’s application deadline for the EV scheme is the end of this year.
For the new battery plant, TAAP established Thonburi Energy Storage Manufacturing Co last October to run the facility, which is scheduled to start operations in early 2019, making lithium-ion batteries on a 30-rai plot just 600 metres from the car factory. The plant is expected to create 300 jobs. Mercedes-Benz aims for locally-assembled batteries to serve PHEVs in the local market.
Mr Grewe said the PHEV models accounted for 40-50% of Mercedes-Benz cars during the first seven months of the year.
Mercedes-Benz posted a total 8,600 cars sold for the period, up by 9%.
Mr Grewe said Thailand is an automotive manufacturing hub in Southeast Asia and the government has provided several supportive policies for the past several decades, which has resulted in carmakers seeing significant successes.
“The EV policy is being supported by the government, on top of this, there is an excise tax discount for EVs to support consumer purchases,” he said, adding all related privileges and incentives are enough for the further development of the local automotive industry.
“To keep positive long-term momentum, the EV infrastructure has to be set up to foster EV uptake in the future.”
Mr Grewe said the related infrastructure, such as EV charging stations, are not enough for motorists, particularly along public places or roadsides.
He said most PHEVs i n the local market can be charged only at home and at work, but public stations must be expanded consequently.
EV infrastructure has to be set up. MICHAEL GREWE President and chief executive, Mercedes-Benz Thailand