Thailand seeks German investment in electric vehicle industry

[webfact]

 

Deputy Prime Minister Parnpree Bahiddha-Nukara announced on a recent official trip to Germany, the Thai government’s intention to attract German automobile manufacturers to invest in Thailand’s burgeoning electric vehicle (EV) industry. This initiative is part of the broader plans for Prime Minister Srettha Thavisin’s official visit to Germany next month.

 

The deputy prime minister, who also serves as the foreign affairs minister, embarked on his official German trip last Wednesday, concluding today. The visit’s agenda surpasses just diplomacy. It is also a preparatory measure for the prime minister’s impending visit on March 15, Parnpree revealed.

 

Multiple investment projects are on the Thai government’s plate to propose to German investors. These projects encompass various sectors, including the colossal Land Bridge megaproject, semiconductors, a data centre, and notably, EV manufacturing.

Parnpree disclosed that the government is particularly eager to invite German car manufacturers to invest in Thailand’s EV industry, considering Germany’s standing as a significant automobile producer, reported Bangko Post.

On the subject of Thailand’s registration as a member of the Organisation for Economic Co-operation and Development (OECD) to boost trade and investment, Parnpree admitted that it is a process that requires time, potentially up to two years.

“Thailand must apply first to express our intention to become a member.”

 

Upon receipt of the application, Thailand stands a better chance of joining the 38-member OECD. Membership would set standards for Thailand concerning the environment, finance, and trade negotiations with developed countries, Parnpree said.

 

Among the deputy prime minister’s itinerary was a visit to the Mercedes-Benz facility in Bremen, a core site for the brand’s plug-in hybrid and EV car manufacturing since 2019. Parnpree expressed Thailand’s eagerness to promote the use of EVs and readiness to support Mercedes-Benz in their Thai investment ventures during his visit.

Parnpree also engaged in discussions with Michael Frieß, the factory’s Head of Production and Location Representative, about the brand’s strategy for EVs and sustainability. Both parties concurred on the significance of using clean energy.

 

Back in Thailand, PM Srettha has expressed his ambition to transform the country into a Future Mobility Hub, according to spokesperson Chai Wacharonke. The EV Policy Board, on Wednesday, also agreed on measures to stimulate energy storage system (ESS) manufacturing investment. Eligible investors and operators can now apply for funds from the Board of Investment until 2027, Chai disclosed.

 

by Alex Morgan

Picture courtesy of Dailynews

 

Full story: The Thaiger 2024-02-26

 

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[flyingtlger]

10 minutes ago, webfact said:

Parnpree disclosed that the government is particularly eager to invite German car manufacturers to invest in Thailand’s EV industry, considering Germany’s standing as a significant automobile producer

Thailand should also consider Korea. I haven't seen or heard of an economical German made E vehicle.

Korea is actually making decent E vehicles and it's also much closer than Germany.... 

[CharlesHolzhauer]

1 hour ago, webfact said:

Parnpree disclosed that the government is particularly eager to invite German car manufacturers to invest in Thailand’s EV industry

Interesting article...

https://www.nytimes.com/2024/02/20/business/vw-electric-vehicles-us.html

'Volkswagen is building a $5 billion factory in Ontario to supply batteries to its factories in Chattanooga, Tenn., and Puebla, Mexico, which together will produce at least 80 percent of the company’s cars sold in North America.'

[hotchilli]

8 hours ago, webfact said:

Deputy Prime Minister Parnpree Bahiddha-Nukara announced on a recent official trip to Germany, the Thai government’s intention to attract German automobile manufacturers to invest in Thailand’s burgeoning electric vehicle (EV) industry. This initiative is part of the broader plans for Prime Minister Srettha Thavisin’s official visit to Germany next month.

Help bail us out, we can't do anything ourselves.

[Srikcir]

Seems Thailand governments focus on Inflow FDI (IFDI) with seemingly little consideration of Outflow FDI (OFDI) that is being substituted with focus on Thailand-bound tourism. It's like "Give Me your money and I will help you visit Thailand" kind of economics - complete economic disconnect in foreign trade relations.

 

"Outward foreign direct investment: A new channel for development" by Matthew Stephenson & Jose Ramon Perea

|October 23, 2018 https://blogs.worldbank.org/psd/outward-foreign-direct-investment-new-channel-development

• OFDI can be used to source knowledge and technology (aka Innovation) not present in the home market. These knowledge effects can benefit not only outwardly invested firms, but also domestic firms in the home economy
• OFDI can boost home country exports through complementary relationships, for instance by opening new export markets or increasing the demand for intermediate exports.

The UK has substantial export trade to Kazakhstan far exceeding Thailand's export trade consistent with its Outflow FDI exceeding Thailand IFDI and OFDI. A Net FDI between nations provides a trade equilibrium that is sustainable for both nations. Thailand seems to understand the value of this concept among some of its its ASEAN neighbors but extending substantial OFDI outside of the region seems lacking.

[IAMHERE]

11 hours ago, webfact said:

Parnpree disclosed that the government is particularly eager to invite German car manufacturers to invest in Thailand’s EV industry, considering Germany’s standing as a significant automobile producer, reported Bangko Post

I bet Thailand would be eager for any country that makes a car to invest in Thailalnd.

[brommers]

Great, so we are trying to get into bed with three manufacurers that are hardly successful with EVs. Merc just announced it no longer plans to be totally electric by 2030 because sales of EVs is below forecast, VW has similar sales problems plus it's products are below par in all important electronics systems and BMW produce wildly expensive vehicles that are not reliable and appeal to only the top 2% of the market.

[John Drake]

Might be barking up the wrong tree.

 

Quote

Germany is currently not at the forefront of e-mobility. "By continuing to reduce the scrappage scheme bonuses, Economy Minister Robert Habeck has put the brake on electric cars in Germany," says Ferdinand Dudenhöffer, formerly professor of Automotive Economics at the University of Duisburg-Essen and now an independent consultant. He estimates that the market share of electric cars in Germany will decline next year. Globally, he says, the outlook is equally bleak. "Only China will continue at full speed, and that will pay off twice and three times over for the Chinese car industry."   https://www.dw.com/en/german-auto-industry-will-2024-mark-a-turning-point/a-67718435