Thailand’s pivotal role in KYMCO’s EV strategy: Chairman Ko

BANGKOK (TVBS News) — In a significant strategic move to capitalize on the burgeoning electric vehicle (EV) market in Southeast Asia, Taiwan's KYMCO on April 22 launched a partnership with Arun Plus, a subsidiary of Thailand's largest state-owned oil and gas company, PTT. The joint venture, AIONEX, aims to spearhead the adoption of electric motorcycles across the region.

Pioneering the electric shift in Southeast Asia

KYMCO Group Chairman Allen Ko emphasized the region's strategic importance, noting Thailand's advanced motorcycle supply chain as a key factor in their decision. "Thailand is a country where the motorcycle supply chain has been well developed," Ko told TVBS World Taiwan. This well-established infrastructure makes Thailand an ideal launchpad for KYMCO's Southeast Asian operations.

The collaboration aims to introduce the iONEX platform in Thailand, focusing on enhancing the EV experience for consumers. "Our goal is quite ambitious because we want to be the leader not just in the Thai market, but also for the whole Southeast Asian region," Ko stated. He pointed out that localization is crucial, ensuring the motorcycles are both high-quality and affordable.

A strategic partnership for a greener future
The partnership represents a significant step towards electrifying Southeast Asia's motorcycle market, which is the third-largest globally after China and India. AIONEX is set to begin full-scale production with an initial capital investment of 600 million baht (approximately US$17 million). Arun Plus will hold a 51% stake in the venture.

KYMCO plans to manufacture motorcycles in Thailand in the latter part of the year, leveraging the expertise gained from previous experiences. "In the past few years in Taiwan, we learned that instead of one company trying to build and deliver everything, it is very important to build an ecosystem to bring in the strengths of different partners," Ko explained. This collaborative approach will be crucial in transitioning to the EV era in Thailand.

AIONEX will produce and sell e-bikes under the KYMCO brand and operate battery-swapping services. Additionally, Arun Plus is collaborating with Chinese battery giant CATL to open a factory in Thailand to support Aionex's motorcycle production.

As the motorcycle market in Southeast Asia continues to expand, with sales reaching 10.6 million units in 2022, the strategic alliance between KYMCO and Arun Plus is poised to play a pivotal role in shaping the future of the region's electric vehicle landscape. This venture underscores the growing importance of sustainable transportation solutions in Southeast Asia's economic and environmental future.