Mercedes-Benz Thailand announced a new milestone of 100,000 cars produced in Thailand and also extends its partnership with Thonburi Automotive Assembly Plant.
Mercedes-Benz Manufacturing Thailand, a local production arm of the German carmaker, will expand its facilities in Samut Prakan to serve future demand and prepare for electric vehicles in the long run.
The company has hired Thonburi Automotive Assembly Plant (TAAP) under Thonburi Group to make Mercedes-Benz models for the local market.
According to chief executive Andreas Lettner, the facility area will increase from 135,000 to 185,000 square metres on an 111 rai plot next year to support additional output.
The plant will make 9,000 cars this year, up from 8,000 last year.
Mr Lettner declined to disclose further details about investment and production capacity from the expansion, saying Mercedes-Benz will transfer its know-how from Germany to Thailand, while the TAAP will responsible for investing in related infrastructure at the factory.
"The manufacturing at TAAP is very flexible to market demand. Plug-in hybrid electric vehicles (PHEVs) are now becoming popular among Thai customers," he said.
The company started to assemble PHEVs early this year, providing half of its output to serve current need.
The Stuttgart-based parent firm, Daimler AG, formed a partnership with Thonburi Group in 1957, when it was an authorised importer and distributor of Mercedes-Benz in Thailand.
Established in 1960, TAAP started to assemble Mercedes-Benz's commercial vehicles before making passenger cars in 1979.
TAAP no longer produces commercial vehicles, but Thonburi Phanich, a subsidiary of Thonburi Group, remains one of Mercedes-Benz's dealers, running three commercial vehicle branches in Bangkok.
TAAP also has an assembly contract with Indian carmaker Tata Motors.
Veerachai Chaochankij, TAAP's managing director said the area increase of 50,000 sq m will be developed at the existing manufacturing facility for Tata because the contract with Tata will expire in March next year.
TAAP will provide another 30-rai plot in the same province should Tata renew its 10-year assembly contract.
Mercedes-Benz and TAAP yesterday signed a contract renewal for 12 years after the two partners celebrated the 100,000th Thai-made PHEV -- S 500 e Exclusive.
TAAP now assembles 16 variant models and its Thai facility together with the plant in Malaysia are only two sites in Asia-Pacific region to make Mercedes-Benz's PHEV.
Michael Grewe, president and chief executive of Mercedes-Benz (Thailand) said two thirds of its sales in Thailand are made at TAAP and the company expects to increase the share of local-made models in the near future.
Mercedes-Benz posted sales of 9,677 units sold over the first 10 months, up by 9.9% and it had 1,722 bookings from the latest Thailand International Motor Expo 2016.
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