Arun Plus aims for profitability with Thailand’s growing EV demand

National oil and gas conglomerate, PTT Plc, is forecasting that its subsidiary company, Arun Plus Co, is likely to attain profitability in the next three to five years, fostered by higher demand from Thai drivers for electric vehicles (EVs).

Arun Plus was founded three years prior when PTT ventured into the EV sector as part of its futuristic energy plan. Ever since, the firm has been continually intent on EV assembly, EV rental development and battery production projects. Their underlying goal is to establish a robust EV ecosystem in Thailand.

One of the key endeavours in this direction is a joint venture, NV Gotion Co, which was established by Arun Plus in the battery business. Arun Plus has a stake of 51% in this venture with the balance of 49% held by Gotion Singapore Pte. The JV has an ambitious plan to build a cell, module and pack battery manufacturing facility in Rayong by 2025. The projected production capacity is anticipated to equate to two gigawatt-hours per annum. The production is set to commence in H2 of next year.

In an attempt to establish a sustainable battery business, talks are also ongoing between Arun Plus and Contemporary Amperex Technology Co, a leading Chinese cell-to-pack battery manufacturer. The specifics of the project including its name, etc, remained undisclosed by Ekachai Yimsakul, managing director of Arun Plus. He revealed that a sum of 3.6 billion baht is planned to be invested in the business which is likely to be set up in Thailand’s eastern region.

In the realm of electric cars, Arun Plus teamed up with Hon Hai Precision Industry Co, the multinational electronics manufacturer based in Taiwan. Together, they founded Horizon Plus Co which is set to operate an EV assembly facility in Ayutthaya’s Rojana Industrial Park. Arun Plus invested 60% into the JV while Hon Hai Precision Industry accommodated the other 40%.

The firm intends to start manufacturing EVs for other brands under Horizon Plus. Initially, their target is to assemble approximately 50,000 EVs per annum by next year with plans to build up the annual production to 150,000 units by 2030, reported Bangkok Post.

Simultaneously, Arun Plus also runs an EV rental service under its fully-owned company, EVME Co. The service is primarily aimed at motorists hesitant to make full commitments to purchasing these vehicles. EVME leases EVs to this customer base for any period ranging from three days to several months.

EVME had around 700 EVs under its wing in March of this year and aims to increase this number to 2,000 by year-end. On the EV charging front, Arun Plus intends to install more charging units outside PTT petrol stations which are currently offering these services.