Volvo Cars (Thailand) plans to invest in the electric vehicle battery repair and recycling business this year to serve the EV and plug-in hybrid EV (PHEV) market.
The EV market in Thailand and Asean has the potential to grow rapidly, but the number of facilities offering repair services for EVs and PHEVs is still paltry in Thailand.
"Volvo has joined hands with TES, a Singapore-based sustainable technology life cycle solution provider, to push ahead with the new investment, which aims to reduce the total cost of ownership for Volvo EVs and PHEVs," said Chris Wailes, managing director of Volvo Cars (Thailand).
The company expects the investment budget to exceed 100 million baht. Project details will be concluded as soon as possible, said Mr Wailes.
Volvo set a sales growth target in Thailand of 20% year-on-year in 2024. Last year sales increased by 24% to 4,000 cars, with battery EVs (BEVs) accounting for 56% of total sales.
New model EX30 was welcomed by customers and is expected to increase fully electric car sales this year, he said.
BEVs accounted for 35% of Volvo's sales in Thailand in 2022, rising to 56% last year, underlining the company's commitment to becoming a fully electric car brand in the country by 2025, said Mr Wailes.
Sweden-based Volvo Car Corporation is implementing a 10-year global EV business plan, which started in 2021. The company aims to have BEVs make up 50% of car sales by 2025 and 100% of sales by 2030.
Volvo is working on installing solar rooftop panels at its central distribution and training centre in Bang Na, slated to be finished by April. After the installation, an operation area of 23,331 square metres, which serves as a car and parts distribution centre, pre-delivery service and training centre, will be powered by 100% renewable solar energy.
He said he is aware of the impact of high household debt and weak purchasing power on the local industry, as commercial banks adopt stricter criteria for car loans.
"The company has seen the impact, especially in the pickup segment, but the problem should not affect the premium car segment. Volvo car owners are financially healthy," said Mr Wailes.