BANGKOK — Thai state energy group PTT will start producing electric vehicles in the country in 2024 through a new joint venture with Taiwan’s Hon Hai Precision Industry, also known as Foxconn, the Bangkok-based company announced Monday.

Horizon Plus, which was established Thursday, is 60% owned by PTT and 40% owned by Foxconn, a major Apple supplier. The companies are expected to invest a combined $1 billion to $2 billion into the venture.

The venture will first set up a factory in eastern Thailand capable of producing about 50,000 vehicles a year. The goal is to expand annual capacity to around 150,000 vehicles by 2030.

The companies plan to use a chassis platform developed for EVs by Foxconn, and partner with suppliers in Thailand on other parts. The approach will cut both development times and production costs, said Buranin Rattanasombat, PTT’s senior executive vice president for innovation and new ventures.

Thailand is the largest auto producer in Southeast Asia, and aims for EVs to account for 30% of domestically made vehicles by 2030. But Japanese companies, which are responsible for around 90% of Thai auto production, have prioritized building EV capacity in the U.S., Europe and China. The Thai government hopes to encourage local parts suppliers to focus more on electrics through the PTT venture.

To promote the use of EVs in Thailand, PTT also began a car rental service on Friday featuring electrics from other automakers. It is also installing chargers at its gas stations nationwide.

Meanwhile, Foxconn in October unveiled its first EVs developed in-house. It aims to start mass-producing vehicles in China and the U.S. in addition to Thailand.

Source : NIKKEI ASIA