Mercedes to supply EV batteries locally

Mercedes to supply EV batteries locally

Mercedes-Benz's hybrid electric vehicles on display at the 34th Thailand International Motor Expo. The German carmaker will locate a battery factory for such cars in Samut Prakan.  PATIPAT JANTHONG
Mercedes-Benz's hybrid electric vehicles on display at the 34th Thailand International Motor Expo. The German carmaker will locate a battery factory for such cars in Samut Prakan.  PATIPAT JANTHONG

German luxury carmaker Mercedes-Benz is set to become the first company in Thailand to produce batteries locally for its electric vehicles (EV).

Scheduled for operation later this year, two local subsidiaries of Stuttgart-based Daimler AG -- Mercedes-Benz Manufacturing Thailand and Mercedes-Benz Thailand -- will hold a ceremony to lay the foundation stone for the new manufacturing plant for plug-in hybrid electric vehicle (PHEV) batteries on March 14.

The new battery plant will be located at the existing vehicle assembly site in Samut Prakan.

Mercedes-Benz has a long relationship with Thonburi Automotive Assembly Plant (TAAP), running back to 1960. Both firms started to assemble Mercedes-Benz's commercial vehicles before making passenger cars in 1979.

A source who requested anonymity said the EV battery plant can serve 5,000 Thai-assembled Mercedes cars annually. Production capacity can easily be doubled should demand warrant.

The plant will make lithium-ion batteries, while TAAP finishes an array of models from Mercedes-Benz. Initially, demand will cater to PHEVs in the C, E, S and GLE line-ups.

In the longer run, the factory will also supply fully electric models and battery electric vehicles (BEVs) such as the GLC-sized sport utility vehicle, once previewed as the concept "Electric Intelligence" car back in 2016.

In mid-January, Michael Grewe, president and chief executive of Mercedes-Benz Thailand, announced that the company had applied for Board of Investment privileges for two platforms: PHEVs and BEVs. The application deadline for both is Dec 28 this year.

He did not give any further details, saying the company planned to launch new models under the government EV scheme this year.

In the Thai market, Mercedes-Benz started assembling HEVs, the first EV technology, in 2013, working with TAAP. The plant has a maximum capacity of 40,000 cars a year, working for three full shifts.

Mercedes-Benz started to build PHEVs in Thailand from early 2016, while its HEV platform has been phased out.

Mr Grewe said the company still assembles EVs for the domestic market only, with no plans for export.

Mercedes-Benz expects to benefit from the EV scheme through lower excise taxes and further incentives for local EV battery production instead of importing batteries from Germany.

AMG-powered models are likely to benefit, as Mercedes plans to pursue high-performance electric technologies.

"This is a battery plant that can cater to all kinds of EVs, be it pure electric or hybrid power," the source said.

To help create economies of scale, Mercedes recently started Thai assembly of the C43 Coupe using a non-electrified 367hp 3.0-litre six-cylinder engine. The car's price dropped by an additional 1 million to 4.14 million baht.

The next AMG product to join the C43 Coupe on the local assembly line is the GLC43 Coupe sharing the same motor. The GLC43 Coupe is priced at 5.79 million baht as an import from Germany.

Do you like the content of this article?
COMMENT