National oil and gas conglomerate PTT Plc expects to make a final investment decision on the development of an electric vehicle (EV) assembly facility early next year under its plan to set up a new business and use more renewable power, says Tanapon Prapapan, PTT's vice-president for investor relations.
The move follows a memorandum of understanding the company signed with Taiwan-based multinational electronics manufacturer Hon Hai Precision Industry Co earlier this year to jointly make a US$1-2 billion investment in an EV joint venture in Thailand.
Hon Hai, also known as Foxconn globally, is keen to develop an EV business, targeting the Southeast Asian market.
PTT's wholly-owned subsidiary, Arun Plus Co, will help the two partners build an EV business in Thailand.
PTT also wants to act as an original equipment manufacturer providing key EV components to car companies.
"Once the decision is made, we plan to start the construction of the first EV assembly facility within the end of next year," said Auttapol Rerkpiboon, chief executive of PTT.
EV production capacity will be 50,000 units in 2023 and will increase to 150,000 units in 2030.
PTT also signed an agreement with China-based EV startup Hozon to further expand the EV business by selling Hozon vehicles.
"We formed a partnership with Foxconn to develop an EV assembling facility and teamed up with Hozon to do a marketing plan and distribute EVs under the Hozon brand," said Mr Auttapol.
Arun Plus also plans to develop and install 1,350 EV chargers within the end of next year, with help from PTT Oil and Retail Business Plc.
Thai authorities initially set a target to have EVs make up 30% of total car manufacturing, or around 750,000 of 2.5 million units by 2030.
The authorities decided to increase the target to 50% on March 24, following the rapid growth of EVs in many countries.