Japanese electric vehicle developer FOMM Corporation plans to assemble electric vehicles in Thailand from next year.
FOMM established a joint venture in Thailand with Trinex, called FOMM Asia, with both partners holding a 49.9% stake in the company. The remaining 0.2% of the equity is held by Kusumoto Chavalit and Partners.
The joint venture is spending US$6m this year on a small assembly plant in the Amata Nakorn Industrial Estate in Chonburi, about 60km (35 miles) east of Bangkok.
Production of a small, four seat electric vehicle is scheduled to begin in June 2018 with production expected to reach 4,000 units by the end of that year, rising to 16,000 units in 2019 and 30,000 by 2020.
The company will also target exports to other Asean countries and to Europe from 2018.
FOMM Asia is expected to qualify for new investment privileges on offer by the Board of Investment, including a five to eight year corporation tax holiday for manufacturers of electric and hybrid electric vehicles and key parts such as batteries, traction motors, battery management systems, charging systems, portable chargers, DC/DC converters and inverters.
The EVs are expected to be priced between THB300,000 and THB400,000 (US$8,700-$11,600).