28-2-2024 (BANGKOK) BMW Group Thailand is set to venture into electric vehicle (EV) battery production, announcing plans to build a state-of-the-art facility in Rayong, Thailand, this year. The move aims to bolster the company’s supply chains for battery EVs and plug-in hybrid EVs, positioning itself in competition with Chinese counterparts in the rapidly expanding electric vehicle market.
Alexander Baraka, President and CEO of BMW Group Thailand, highlighted the strategic decision, stating, “We decided to invest in battery manufacturing because China is expanding its EV investment and supply chains in Thailand.” The factory’s investment budget and production capacity are yet to be finalized but will be determined shortly.
This facility will mark Thailand as the first country in Southeast Asia to house a BMW EV battery production plant, following similar establishments in China and Hungary. BMW envisions Thailand as a crucial export hub for its battery production, strengthening its foothold in the region.
While the company contemplates investing in EV production in Rayong, Baraka emphasized that the final decision rests on various factors, including market demand and the global semiconductor supply, a critical consideration in today’s automotive landscape.
Thailand’s EV market is experiencing rapid growth, driven by government initiatives aimed at establishing the country as a regional hub for EV production. Recently, the National Electric Vehicle Policy Committee endorsed cash grants for local EV battery cell manufacturers and promoted energy storage systems with financial support from the Competitiveness Enhancement Fund.
BMW Group Thailand is responding to the evolving automotive landscape, especially with the rise of Chinese EV businesses. The global manufacturers from Europe, the US, and Japan are adjusting their strategies, offering competitive pricing and enhancing after-sales services.
In 2023, BMW Group Thailand achieved total car sales of 15,477 units, including BMW and Mini brands, marking a 4% year-on-year increase. Baraka noted that battery EVs secured a notable 15.5% market share of total sales in Thailand.
The company is closely monitoring the impact of tensions in the Red Sea on marine logistics and global supply chains. Baraka acknowledged some short-term disruptions in shipping auto components to Asia due to the conflict but expressed confidence in the parent company’s ability to navigate the situation.
In conjunction with this announcement, BMW Group Thailand unveiled three new BMW models, including the BMW iX2 xDrive30 M Sport, and three Mini Cooper models, including the MINI Cooper S Countryman Highlands Edition.
