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Tuesday, June 18, 2024

Mercedes-Benz Expands EV Production in Thailand with 10-Year Contract

Mercedes-Benz has announced the extension of its electric vehicle (EV) production in Thailand by renewing its contract with Thonburi Automotive Assembly Plant (TAAP) for another decade. This renewal marks a significant expansion of its production base, following the milestone celebration of 45 years and the production of 200,000 vehicles.

On Monday, Chai Watcharong, a Thai government spokesperson, commended Mercedes-Benz (Thailand) for its decade-long contract renewal with Thonburi Car Assembly Plant Co., Ltd. The partnership will focus on car assembly and electric car battery production, aligning with the Circular Economy concept promoted by the Thai government.

As part of its commitment to the Circular Economy, Mercedes-Benz will deliver 2 MWh of lithium-ion battery cells, known as Cellblocks, from high-voltage batteries used in the production process, to the National Science and Technology Development Agency (NSTDA) by July. These cells will support research, development, and technology transfer, enhancing the skills of Thai personnel and ensuring locally produced electric vehicle batteries meet global standards.

“This initiative aligns with governmental efforts to enhance the country’s production capabilities, establish Thailand as a key regional supply chain hub, and support the nation’s ambition to become a Future Mobility Hub,” Watcharong stated.

Martin Schwenk, CEO and President of Mercedes-Benz Thailand Limited, emphasized that the expertise of Thonburi Car Assembly Plant complements the luxury brand’s standards of technology and innovation. He highlighted the long-standing collaboration that has produced numerous luxury vehicles for the Thai market.

The TAAP currently produces over 13 Mercedes-Benz models, including the A-Class, C-Class, E-Class, S-Class, GLA, GLC, GLE, GLS, C-Coupe, GLC-Coupe, CLS, Maybach S-Class, and EQS. Since its establishment in 1979, the factory reached a significant milestone by producing its 200,000th vehicle in January.

Rattaphol Viriyapant, Chairman of Thonburi Automotive Assembly Plant Co., Ltd., noted the company’s expansion in automotive assembly to encompass all segments, including battery production and EV assembly. The Thonburi Energy Storage Manufacturing Co., Ltd. (TESM) has initiated production of batteries and 100% electric vehicles, starting with the EQS 500 4MATIC AMG Premium.

“We are dedicated to enhancing the quality of our factories and the capabilities of our personnel to ensure customer confidence at every production stage. Our goal is to elevate the Thai automotive industry and create a new legacy for Mercedes-Benz vehicles in Thailand,” Viriyapant said.

Among those present at the contract renewal ceremony were several key officials and industry leaders, underscoring the importance of this partnership in advancing Thailand’s position in the global automotive industry.

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