![BMW planning new EV-battery production plant in Thailand to compete against Chinese brands 01]()
BMW Thailand is reportedly planning its first EV-battery production plant to support local BEV and plug-in hybrid (PHEV) models, as well as to serve other export markets and better compete with Chinese BEV supply chains in the ASEAN region
Bangkok Post reports that the plant will be located in Rayong, Thailand, whilst investment budgets and production capacities of the factory will be revealed soon.
The plant will also become BMW's first EV battery production facility in the ASEAN region, and the third in the company’s global supply chain after China and Hungary.
![BMW planning new EV-battery production plant in Thailand to compete against Chinese brands 01]()
Speaking of the plans, President and CEO of BMW Group Thailand, Alex Baraka said, "We decided to invest in battery manufacturing because China is expanding its EV investment and supply chains in Thailand."
“BMW also plans to invest in EV production in Rayong, but a final decision will be determined by many factors, including market demand and the global supply of semiconductors," Baraka added.
Besides this, BMW also plans make it's Thailand plant an export hub for battery production to support its global supply chain, and allow the company to compete against an influx of Chinese brands that are jostling to take advantage of Thai-Government incentives for EVs as it seeks to establish itself as a key BEV hub wthin the ASEAN region.
Also read: ;CKD in Malaysia, exported to Thailand, G28 2023 BMW 3 Series LWB facelift (LCI) launched in Thailand
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Recently, the Thai-Government's EV Board approved the second phase of EV packages, known as EV 3.5 which comes into effect for 4 years (2024-2027) to further promote EV industry growth and draw more investments for EV manufacturing in Thailand.
Under the EV 3.5 package, the Thai-government will provide purchase-subsidies for electric cars, pick-up trucks, and motorcycles based on vehicle type and battery capacities.
These include subsidies ranging between THB 50,000 (~RM 6.6k) and THB 100,000 (~RM 13.2k) for passengers cars under THB 2 million (~RM 265k) and for THB 100,000 (~RM 13.2k) subsidies locally-assembled (CKD) EV pick-up truck purchases. These incentives also include reductions in import duties and excise tax.
