KYMCO eyes Thailand market to expand EV total solutions

TAIPEI (TVBS News) — In a move to dominate the booming Southeast Asian electric vehicle (EV) market, Taiwan's leading two-wheeler manufacturer KYMCO is partnering with Arun Plus, a subsidiary of Thailand's state-owned oil and gas group PTT. The joint venture, named Aionex, aims to establish itself as a key player in the region's rapidly growing electric motorcycle sector.

Pioneering the electric shift in Southeast Asia

KYMCO Chairman Allen Ko highlighted the strategic importance of Southeast Asia for the company, stating, "I think Southeast Asia is probably the most important market for us in the world, not just because of its size but also because of the governments in Southeast Asian countries that are very aware of the issues to go into transition from the ICE (internal combustion engine) vehicles to EVs." 

Ko emphasized the necessity of finding the right partners to build a comprehensive EV ecosystem for consumers. He added, "We are probably the most advanced or the only one who provides this platform. We provide a platform, provide a place where everybody can be tightly integrated through technology."

KYMCO plans to launch the iONEX platform in Thailand, focusing on introducing the EV experience to consumers in the first half of the year. The latter part of the year will be dedicated to localizing the EV ecosystem, with plans to eventually manufacture the motorcycles in Thailand, learning from the company's previous experiences.
Ekachai Yimsakul, managing director of Arun Plus, expressed confidence in the partnership with KYMCO, acknowledging the challenges of shifting consumer lifestyle and behavior from ICE to EV. He mentioned the importance of introducing products that not only align with the latest technology but also enhance the quality of life and offer financial benefits to consumers.

A strategic partnership for a greener future
The collaboration between KYMCO and Arun Plus represents a significant step towards electrifying Southeast Asia's two-wheeler market, the world's third-largest after China and India. The new venture, AIONEX, is capitalized at 600 million baht (US$17 million), with Arun Plus holding a 51% stake.

AIONEX will not only produce and sell e-bikes under the KYMCO brand but also operate battery-swapping services. The venture plans to utilize the expertise of KYMCO and begin full-scale production in locations under consideration in Thailand and other Southeast Asian countries. Additionally, Arun Plus is working on EV battery production, partnering with Chinese battery giant CATL to open a factory in Thailand, an initiative that will support Aionex's motorcycle production.

Gary Ting, AIONEX Managing Director (CEO), expressed optimism about the partnership, stating, "We believe Thailand is the best market for us to find the best partners. We are trying to build the ecosystem in Bangkok and Thailand and also extend to the whole region. Southeast Asia, including Indonesia, Vietnam, and even globally." 
He added: "Because we believe Thai has a very good fundamental for the supply chain. So we hope we can build up the icon or benchmark for the Taiwan business to know how we can provide the best solution to help other countries to pursue or achieve their goal."

As Southeast Asia's motorcycle market continues to grow, 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.