Following its initial announcement of plans to produce lithium ion battery packs for electric and plug in hybrid vehicles in Thailand, as the company anticipates strong demand growth for these vehicles across the region in the next few years, Daimler’s Mercedes-Benz Cars has now detailed its plans, with local partner Thonburi Automotive Assembly Plant (TAAP), to spend EUR100m by 2020.
The spend will be used for an extension of the existing car plant and a new battery assembly factory to be built on the site ensuring, the automaker said, “availability of cutting-edge technology for electrified and EQ Power plug-in hybrids produced in Thailand”.
Go deeper with GlobalData
“The electric initiative in [our] flexible and efficient global production network is progressing well and with ultimate speed,” said Mercedes production and supply chain chief Markus Schaefer.
“With our highly standardised and scalable battery production concept we are able to start operations in any region at short notice and at the right size. Battery production in Thailand will enhance our global production network to six factories on the three continents.”
A standardised production and plant concept allows the carmaker to scale production so various value-added stages as well as production “concepts can be implemented flexibly and in line with markets worldwide”.
Uttama Savanayana, Thailand’s minister of industry, said: “The company’s investment in Thailand generates a currency inflow and contributes to the economic, technological and social developments of our country. Mercedes-Benz has applied for promotional privileges for its new investment in PHEV production which coincides with Thailand’s automotive industry development towards the future of electric vehicles and supply chain development. This new move reflects the confidence that the German carmaker has in Thailand as its key production base in this region.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The investment will also bring to Thai people an opportunity to heighten their competence with better know how and higher technologies than conventional auto parts production which will contribute significantly to the progress of Thailand’s automotive industry and drive the nation’s development strategy towards tangible results.”Sixth Mercedes-Benz factory to produce batteries
Batteries made in Bangkok will be used both in locally assembled models and exported.
Daimler is spending EUR1bn on its global battery production network which will also include factories in Germany, the US and China. Thai production is planned to start by 2019.
Part of the joint investment with TAAP includes extending the existing KD assembly plant leading, the automake said, “to a substantial increase in the production portfolio, adding new models”.
Last year, Mercedes-Benz Thailand achieved record sales with over 14,000 units sold. The best-selling models were the E-Class and C-Class saloons and CLA Coupe. Nine models are locally assembled models. PHEVs include the C- and S-Class and GLE plus E 350e Avantgarde, Exclusive and AMG Dynamic.
Partner TAAP, which operates the Bangkok plant, last year produced over 12,000 cars locally with 1,000 workers. The expansion and battery plant will create 300 new jobs with 100 of those for battery production.
Andreas Lettner, CEO of Mercedes-Benz Manufacturing Thailand, said: “With the expansion of our plant and the future production of batteries here at the Bangkok site, we are once again intensifying our cooperation with TAAP and preparing ourselves for the future of mobility. This is also a great opportunity for our employees, who will be trained for their new, highly qualified tasks in order to be optimally prepared for future state-of-the art technologies. We are committed to strengthening our regional footprint and the successful collaboration with our Thai partners.”
By 2022, Daimler will electrify the Mercedes-Benz range, offering at least one electrified alternative in all segments from compact cars to large SUVs. The company is planning to offer more than 50 electrified vehicle variants.
It will also launch more PHEVs and models with 48-volt electrics. The first EQ series model- the EQC – will go into production in 2019 in Bremen, Germany.
