BMW Will Establish First Southeast Asian EV Battery Factory In Thailand

BMW Group Thailand has announced plans to set up an electric vehicle (EV) battery factory in the country this year. This decision is in response to China's growing EV investment and supply chains in Thailand. The Rayong factory will boost the company's sales of battery and plug-in hybrid electric vehicles.

Alexander Baraka, the company's president and CEO, announced that Thailand will be the first Southeast Asian country to house a BMW EV battery production facility. This comes after the establishment of plants in China and Hungary. The decision to invest in battery manufacturing was prompted by China's aggressive expansion of its EV investment and supply chains in Thailand, according to Bangkok Post.

BMW Group Thailand sees Thailand as a potential export hub for battery production. The company is also considering investing in EV production in Rayong, but this will be dependent on a number of factors, including market demand and global semiconductor supply.

The Thai EV market is expanding rapidly, aided by government policies aimed at promoting the industry and positioning Thailand as a regional hub for EV production. Last week, the National Electric Vehicle Policy Committee approved cash grants for local EV battery cell manufacturers and promoted energy storage systems with funds from the Competitiveness Enhancement Fund.

This government policy has encouraged automakers, particularly those from China, to invest in Thailand. This has prompted global manufacturers in Europe, the United States, and Japan to adjust their strategies by offering lower-priced vehicles and improving after-sales services.

In 2021, BMW Group Thailand reported total car sales of 15,477 units, including both the BMW and Mini brands, a 4% increase over the previous year. Additionally, BMW Motorrad motorcycle sales totaled 1,079 units. 

"Our battery EVs gained a market share of 15.5% of sales in Thailand,” Baraka said.
BMW Group Thailand is also keeping track of the impact of the Red Sea conflict on marine logistics and global supply chains. Baraka stated that the conflict is having a short-term impact on the company because it has delayed the shipment of some auto components to Asia. However, he assured them that their parent company would handle the situation effectively.