Pentinum Electronics Co has partnered with China's Luyuan Electric Vehicles Co for a 50-million-baht investment in the construction of an electric motorcycle factory in Thailand, which would allow the Chinese firm to keep growing its exports amid the impact of the US-China trade war.
The 2023 sales target for electric motorcycles under the Lyva brand has been set at 5,000 units, said Nitiwong Lahawattanakul, chairman of Pentinum Group, the parent company of Pentinum Electronics which runs a car and motorcycle business.
"The assembly plant will be located in Nonthaburi," he said.
The factory will produce 1,000 electric motorcycles in the first phase and increase the number to 2,000-3,000 in the second phase this year, said Tanut Jirabundansuk, chief executive of Pentinum Electronics.
"We look forward to expanding the production facility by building a second assembly plant in Rayong within 1-2 years," said Mr Nitiwong.
Pentinum Group is in talks with Luyuan on an investment in the Rayong factory. They expect to conclude the talks within this year.
The companies plan to use the second production facility to serve the company's plan to export electric motorcycles to Asian and European markets.
Luyuan is interested in using Thailand as a new production base, following the impact of the US-China trade war, which has caused many Chinese firms to expand their production facilities into Asean.
Thailand is the second country in Asean after Vietnam where Luyuan decided to build factories. The electric motorcycle maker aims to benefit from strong supply chains in the Thai automotive industry as well as high skilled labour.
Electric motorcycles have become more popular in Thailand especially after the surge in oil prices amid the global energy price crisis.
Pentinum Electronics aims to be among the key sellers of EVs in Thailand.
It is cooperating with a partner to serve businesses, including food delivery, in the business-to-business segment.
The company views electric motorcycles as a way to help Thailand deal with noise pollution and growing worry over PM2.5 ultra-fine dust.
