
Mercedes-Benz Thailand has added two new models for local production, reports local publication the Bangkok Post. Martin Schulz, the vice-president for sales and marketing at the local unit, stated that the GLA and the CLA will be locally assembled at the automaker's Thonburi Automotive Assembly Plant in Samut Prakan province starting this month. He expects the retail prices of these models to reduce by nearly THB250,000–350,000 (USD6,880–9,632) due to the tax breaks awarded to local assembly arrangement.
Significance: Mercedes-Benz operates an assembly plant in Samut Prakan through local joint-venture partner Thonburi Automotive Assembly Plant Company Limited. The plant assembles the C-, E-, S-, and M-Class models with kits sourced from the automaker's German plants, according to IHS Automotive data. The plant largely caters to local demand, while limited volumes are exported to neighbouring countries, including Malaysia, in the Association of Southeast Asian Nations region. According to our data, the CLA nameplate was supplied as a fully imported model by Mercedes-Benz's Hungary plant, while the automaker's German plant supplied the GLA model. Our data indicates that the Thai production of the CLA model will remain at 359 units in 2015, and GLA model at 141 units. The overall production of Mercedes-Benz in Thailand is predicted at 7,113 units, representing a surge of 52.4% year on year; this is expected to rise to 9,813 units next year. Mercedes-Benz invested THB1.2 billion in early 2013 to raise the plant production capacity from 16,000 units per annum (upa) to 19,000 upa.