Mercedes-Benz Thailand, the local unit of the German carmaker, is set for a foray into the government's much-touted electric vehicle (EV) scheme, saying the move will help it fulfil a long-term strategy of creating more eco-friendly cars in Thailand.
Frank Steinacher, vice-president of sales and marketing, said the Thai government has moved in the right direction with EV production and Mercedes-Benz has the same commitment.
"The government's strategy matches with our long-term investment goals," he said. "Mercedes-Benz's next milestones are for sure EVs and autonomous driving cars."
Mr Steinacher said in addition to government incentives, the company's investment is in response to customer desires.
Mercedes-Benz aims for EVs to account for 40% of the company's sales volume by 2017, up from 30% in 2016.
"We are keen on EVs because they have become a market trend. We cannot ignore this trend and let other players take this opportunity," he said.
Once the market turns to EVs, Mercedes-Benz will no longer produce any conventional vehicles using diesel or petrol, said Mr Steinacher.
Mercedes-Benz started assembly of hybrid electric vehicles, the first EV technology, in 2013 with its local partner, Thonburi Automotive Assembly Plant Co (TAAP), in Samut Prakan.
Then it started assembly of plug-in hybrid electric vehicles (PHEVs) in Thailand in 2015.
Mercedes-Benz has 12 PHEV models, mainly assembled at TAAP, with nine of them launched in the local market last year.
For this year, all PHEVs are under the new brand "EQ: Electric Intelligence", which has been introduced in cities such as Paris, Geneva, Shanghai as well as Bangkok last March.
The EQ is one of four of Mercedes-Benz's brands, the others being Maybach, AMG and Me.
Mercedes-Benz Thailand reported sales of 4,414 units from January to April, up 39% year-on-year.