Topbest Co, the importer of commercial vehicles from Munich-based MAN Truck & Bus, is constructing a 3-billion-baht factory to assemble vehicles for the German firm and strengthen its brand in Thailand.
The facility, located on a 100-rai plot of land in the Rangsit area of Pathum Thani, has an annual production capacity of 8,000 units, comprising 6,000 truck bodies and 2,000 bus bodies.
The firm aims to sell the vehicles in the domestic and overseas markets.
"We are the only company appointed by MAN Bus & Truck Southeast Asia to produce and market MAN vehicles," said Saman Techaitthiporn, president of Topbest.
The construction of the new plant is scheduled to be completed in the final quarter of 2023.
It is expected to generate jobs for around 700 workers.
According to Topbest, sales of commercial vehicle bodies in the Thai market stands at 30,000 units a year, with 1,000 bus bodies sold annually.
The company expects the tourism recovery to increase domestic demand for commercial vehicles. The number of foreign tourist arrivals is on the rise, following the reopening of Thailand and China.
Topbest expects to rack up revenue from both Thai and neighbouring markets.
"The company is focusing on the Asean market because of its high growth potential, driven by a large population and economic growth boosted by tourism," said Mr Saman.
"Australia and New Zealand are also our focus due to growing demand for the vehicles."
MAN Truck and Bus has so far posted accumulated sales of 1,000 buses and trucks in Thailand.
Topbest plans to increase the number of service centres for MAN trucks and buses to 12 by next year, up from the current two centres located in the Khlong Luang area of Pathum Thani and Songkhla's Hat Yai district.
The company is conducting a feasibility study on a plan to invest in the cell-to-pack (CTP) business in the electric vehicle (EV) battery segment.
The Thai government is promoting the EV industry as eco-friendly cars are part of a global trend forming part of campaigns to reduce carbon dioxide emissions.
The National EV Policy Committee announced in 2021 that it wanted EVs to constitute 50% of locally made vehicles by 2030, part of an ambitious plan to make Thailand a regional EV hub.
"We are interested in CTP, but our investment decision will depend on how fast the EV market will grow," said Mr Saman.