Mercedes-Benz commits to electric vehicle production in Thailand – introduces cheaper CKD EQS500 4Matic

According to a report by BloombergMercedes-Benz has committed production of electric vehicles (EVs) in Thailand after signing an agreement to import electric vehicles into the country.

Under the agreement, the German carmaker will benefit from lower import duties and excise taxes on fully imported electric vehicles until 2023, said Ekniti Nitithanprapas, general manager of the special consumption division. Thailand’s special forces said in a recent statement. He added that the government has paid 81 million baht (about RM10.32 million) in subsidies for about 540 electric cars purchased in Thailand so far.

The agreement also obliges Mercedes-Benz to assemble electric vehicles in Thailand at its plant in Samut Prakan province, with EQS was the first to leave. The brand’s flagship EV sedan initially arrived as an imported model offered in two variants – EQS450+ AMG Premium and EQS450+ Version 1 – prices from 8.57 million baht (about RM1,092 million).

In November this year, Mercedes-Benz Thailand replaced both variants with the locally assembled and more affordable EQS500 4Matic AMG Premium at 7.9 million baht (about RM1,007 million). The new variant made its public debut at this year’s Thailand International Motor Show and offers better specifications and more equipment than the original duo it replaced.

Thailand is the second market after India to manufacture EQS outside Germany, with the second country’s Pune factory having launched the EQS580 4Matic since October this year. Currently, Mercedes-Benz Thailand’s EQ product line includes only EQS, while in Malaysia we only welcome EQE to join EQA, EQB, EQC and EQS. All five products are imported complete units (CBUs) from Germany, although domestic assembly (CKD) is on way, as confirmed by the Chairman and CEO of Mercedes-Benz Malaysia, Sagree Sardien.