Mercedes-Benz has reiterated its plans to retain Thailand as a regional manufacturing base for its Southeast Asian operations, highlighting the role of local production during the launch of the latest S-Class and Mercedes-Maybach S-Class models.

At a press preview recently, ahead of the official market launch, senior global and regional executives discussed how local manufacturing helps the company manage tax changes and supports the transition towards electrified vehicles across the region.

The event was attended by Industry Minister Varawut Silpa-archa, who expressed the government's support for Mercedes-Benz's manufacturing operations in Thailand.

Mathias Geisen, Member of the Board of Management of Mercedes-Benz Group, responsible for Sales & Customer Experience, said Southeast Asia remained part of the company's global strategy.

"If you want to run the business worldwide, you have to ensure growth across all markets. This region has always been crucial, with sales established for decades," Geisen said. He added that Mercedes-Benz was introducing more than 40 new models over two and a half years, offering customers worldwide a choice of different powertrain technologies.

Martin Schulz, CEO and President of Mercedes-Benz Malaysia and Head of Region for Mercedes-Benz Cars Southeast Asia, discussed the company's regional strategy and luxury vehicle market outlook. He oversees the Southeast Asian cluster covering Thailand, Malaysia, Vietnam, Singapore and general distribution markets, and identified local assembly as an important part of the company's regional operations.

Addressing regulatory changes in Thailand, including a proposed 35% excise duty structure for imported electric vehicles, Schulz said Mercedes-Benz was largely protected from the impact through its local assembly partnership with Thonburi Automotive Assembly Plant.

"It reaffirms that our commitment to local production is the right strategy," Schulz said.

He noted that Singapore had the region's highest electric vehicle adoption rate, followed by Thailand, where battery electric vehicles (BEVs) accounted for 25 to 30% of local manufacturing output. Malaysia was also experiencing growth in electric vehicle adoption, albeit from a lower base.

Commenting on increasing competition across Southeast Asia, Schulz said market pressure "keeps us on our tracks and active". He added that allocations had been secured for imported and locally assembled models to meet demand despite global production capacity constraints.

Mercedes-Benz launched two locally assembled models in Thailand: the new S-Class and the Mercedes-Maybach S-Class.

Both the S 350 d 4Matic turbocharged diesel and S 580 e 4Matic plug-in hybrid (PHEV) are priced from THB 7.2 million (US$ 215,125). The plug-in hybrid features a 21.96 kWh battery, providing an electric-only range of up to 100 kilometres under WLTP testing standards.

The locally assembled Mercedes-Maybach S 580 e plug-in hybrid is priced from THB 9.9 million, rising to THB 10.9 million with the optional two-tone exterior finish. It features the Mercedes-Benz Operating System (MB.OS) and an artificial intelligence-powered MBUX Virtual Assistant.

Christian Schell, President and CEO of Mercedes-Benz Thailand, said offering conventional combustion-engine and plug-in hybrid powertrains at identical starting prices gave Thai customers a choice of powertrain options at the same price level.

Both models are available through Mercedes-Benz's agent network across Thailand.