BMW plans electric car battery factory in Thailand

BANGKOK: German carmaker BMW Group is considering building a new plug-in hybrid vehicle battery factory in Thailand, the country's industry minister said on Friday.

Construction was likely to start in the middle of next year with an investment of 2 billion baht ($57 million), Industry Minister Atchaka Sibunruang said, adding that the factory would make hybrid vehicles more affordable for Thai consumers.

"Hybrid vehicles are still expensive now but once there is a factory established and batteries are available this will make it affordable for consumers," Atchaka told reporters.

A spokesman for BMW in Thailand said the company was not immediately able to comment on the investment but would issue a statement on Monday.

Atchaka said the Thai government was working with BMW to offer tax incentives in order to make the country a centre for plug-in hybrid vehicles.

Thailand is a regional production and export hub for the world's top carmakers, and the sector accounts for around 10 percent of the country's gross domestic product.