Japanese car giant Honda is investing in a batteries production line for a planned hybrid electric vehicle (HEV) manufacturing programme in Thailand.
Honda said the equivalent of around $160 million will be needed to pave the way for commercial production of locally made hybrid electric vehicles (HEVs) and batteries in Thailand, according to the Bangkok Post.
Honda Automobile Thailand chief operating officer Pitak Pruittisarikorn told the paper Honda will provide around $52m of the investment total and suppliers will make up the rest.
“Honda’s battery assembly line will only serve HEVs,” Pitak said.
The investment plans have been submitted for approval to the Thai Board of Investment which, if approved, would unlock government-backed support such as relief on certain import duties.
Honda’s move follows reports that Nissan is in talks with Thailand’s government about starting battery production there.
Nissan regional senior vice-president Yutaka Sanada said during a Nissan conference in Thailand the country’s military government was “keen to support investment” in batteries and EV production.
