Mercedes-Benz makes strategic investment for EV battery production in Thailand

Mercedes-Benz, along with its local partner Thonburi automotive assembly plant (TAAP), will invest over 100 million euros (Rs 2,407 crore) for the extension of the existing car plant and into a new battery assembly facility built on the site.

“As part of our strategy, we are now preparing for the future of electromobility in Thailand together with our partner TAAP. The battery production in Thailand will enhance our global battery production network to six factories on the three continents,” states Markus Schäfer, Member of the Divisional Board of Management Mercedes-Benz Cars, Production and Supply Chain.

Dr. Uttama Savanayana, Minister of Industry in Thailand, “Mercedes-Benz has applied for promotional privileges for its new investment in Plug-In Hybrid Electric Vehicle (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.”

By 2022, Daimler claims that it will electrify the entire portfolio of Mercedes-Benz, offering customers 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.

Mercedes-Benz will be continuously supporting the development of Plug-In Hybrids and the introduction of 48-volt-systems. The first EQ series model- the EQC - will go into production in 2019 in Bremen, Germany. The product and technology brand EQ is an integral part of CASE, which stands for the intelligent combination of the strategic pillars of connectivity (Connected), autonomous driving (Autonomous), flexible use (Shared & Services) and electric drive systems (Electric).

Sixth Mercedes-Benz factory to produce batteries
The battery production in Bangkok will be part of the global battery production network of Mercedes-Benz Cars for local demand and export. In total, Daimler will invest more than one billion euros (Rs 24 lakh crore) in the battery production network, which will also include production facilities in Germany, the U.S. and China. Local production of batteries in Thailand is planned to start by 2019.

Mercedes-Benz has stated that in Thailand, Plug-In Hybrid models are particularly popular due to C- and S-Class and the GLE Plug-In Hybrids and most recently with the newly launched, the E 350e Avantgarde, E 350e Exclusive and E 350e AMG Dynamic.

In 2017 alone, TAAP claims to have produced over 12,000 cars for Mercedes-Benz. The plant currently employs over 1,000 people. The investment will create more than 300 additional jobs at the site, thereof nearly 100 for battery production alone. Veerachai Chaochankij, managing director of Thonburi Automotive Assembly Plant Company stated, “Our new battery factory is being built on a land plot near the existing car assembly plant of Mercedes-Benz in Thailand. The production will start at the beginning of 2019.”

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