Arun Plus Co, a subsidiary of national oil and gas conglomerate PTT Plc, expects to gain profit from its fledging electric vehicle (EV) businesses within 3-5 years as Thai drivers become more interested in these new-generation cars.
The company is pushing ahead with EV assembly, battery production and EV rental development projects, all meant to help establish a Thai EV ecosystem.
Arun Plus was created when PTT diversified into the EV sector three years ago under its future energy plan, aiming to achieve rapid yet sustainable growth over the long term.
In the battery business, Arun Plus formed a joint venture called NV Gotion Co, claiming a 51% stake, with 49% contributed by Gotion Singapore Pte, with a plan to build a factory to make cells, modules and pack batteries by 2025 in Rayong.
The production capacity is two gigawatt-hours a year.
NV Gotion plans to start making batteries in the second half of next year.
Arun Plus is also in talks with Chinese cell-to-pack battery maker Contemporary Amperex Technology Co to jointly run a battery business to serve local EV manufacturers.
Ekachai Yimsakul, managing director of Arun Plus, did not elaborate on the project details such as the name of the new venture, saying only the Thai firm plans to spend 3.6 billion baht on this business, establishing it in the eastern region of Thailand.
In terms of electric cars, Arun Plus joined with Taiwan-based Hon Hai Precision Industry Co, a multinational electronics manufacturer, to set up Horizon Plus Co to run an EV assembly facility in Rojana Nongyai Industrial Park in Chon Buri.
Arun Plus owns a 60% stake in Horizon Plus, with 40% funded by Hon Hai Precision Industry.
Horizon Plus plans to initially produce EVs for other brands. The company wants to start assembling 50,000 EVs a year in 2024, increasing annual production to 150,000 units in 2030.
Arun Plus also operates an EV rental service through its wholly-owned EVME Co.
Mr Ekachai said EVME plans to increase the number of EVs in its service to 2,000 by the end of this year, up from 700 in March.
The company targets motorists who remain reluctant to purchase an EV and completely change from the familiar technology of internal combustion engines.
EVME leases EVs to this segment, who can choose to try the technology for a period ranging from three days to months.
In the EV charging business, Arun Plus plans to develop more charging facilities outside PTT petrol stations, which are offering charging services.