Mercedes mulling PHEV battery factory in Thailand

With the sales of plug-in hybrid vehicles (PHEV) in Thailand growing, Mercedes-Benz is considering investing in a battery plant in the ASEAN country to meet demand, just-auto reports.

According to the report, Michael Grewe, president of Mercedes-Benz Thailand, told reporters that the company currently imports high-voltage batteries from Germany for the PHEVs assembled in the Samut Prakan factory. The local Mercedes boss did not confirm when the plant would be built, but said a local source for the batteries is needed.

This doesn’t come as a surprise as in July, arch-rival BMW announced it is considering investing in a plant to produce batteries for its Thai-assembled PHEVs. Driven by new tax incentives for fuel-efficient vehicles (previously based purely on engine capacity) demand for premium brand PHEVs, pushed by Mercedes-Benz and BMW, has risen.

Mercedes-Benz Thailand says that it has sold 1,500 PHEVs in the Land of Smiles so far this year, with 500 units sold in August alone. That’s close to a staggering 60% of the brand’s total sales in Thailand. The three-pointed star brand sells the C 350e Sedan and Estate (RM314,045 to RM438,891), S 500e limo (RM712,455 to RM832,077) and GLE 500e SUV (RM534,481 to RM594,159) PHEVs in Thailand. PHEVs have replaced conventional hybrids in the locally-assembled line-up.

Other PHEVs sold in Thailand are the BMW 330e, BMW X5 xDrive40e, Porsche Cayenne S-E Hybrid and Volvo XC90 T8 Twin Engine.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Madani on Sep 29, 2016 at 3:41 pm

    Mercedes might want to consider investing in Malaysia too, since we have an advanced EEV program.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Damn, another win for thai.

    Like or Dislike: Thumb up 1 Thumb down 3
  • 550,000 thai employed in the car industry, and the number keep going up up up

    Like or Dislike: Thumb up 2 Thumb down 0
  • inb4 dun wan Lynas in… oh wai

    Like or Dislike: Thumb up 1 Thumb down 0
  • Encik Kunta on Sep 29, 2016 at 5:50 pm

    Another blow to Malaysia. BMw and Mercedes both want Thailand. More money to Thailand. We just lost few thousand jobs plus a couple of billion USD in investment.

    Already we lost about a trillion ringgit because nearly all car companies made Thailand the Detroit of Asia. We held that title in the 80s.

    What is wrong with Malaysia? Why they don’t want to open in Malaysia?

    Like or Dislike: Thumb up 2 Thumb down 4
    • Same L0rrrr on Sep 29, 2016 at 8:05 pm

      Totally agreed with you , thats why both of us can only afford proton for our son. We deserve better car

      Like or Dislike: Thumb up 4 Thumb down 2
    • kzm (Member) on Sep 30, 2016 at 1:31 am

      I doubt we held the title throughout 80’s.
      I give you data for production from 1980-1990.
      Indo/Boleh/Thai
      1980 172 101 89
      1985 144 107 86
      1990 275 186 304
      source: Thailand In Global Automotive Networks
      In which period bolehland get title Detroit of Asia?

      Like or Dislike: Thumb up 3 Thumb down 0
  • Encik Kunta on Sep 29, 2016 at 5:56 pm

    We should close MAI down. government spends millions to pay the goons at MAI to travel all over the world to learn about cars. 5 star hotels and business class flights for the fatsoes at MAI.

    But all investments moving to Thailand.

    Like or Dislike: Thumb up 4 Thumb down 0
    • our officials mentality is still makan gaji cepat puas hati bolehlah cukup makan nak ubah apa ok dah ni janji aku senang ..i doubt malaysia can move forward..Thai on the other hand very progressive..always looks for opportunities and ambitious..they really have kaizen mentality..I think thailand will develop faster to become high income country..

      Like or Dislike: Thumb up 2 Thumb down 1
 

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