SET-listed TWZ Corporation Plc, a distributor of mobile phones and other communications devices, has announced the creation of a new business to import electric vehicles (EVs) to capture new demand from Thai motorists.
TWZ is studying the EV market potential in the country.
Puttachat Rungkasiri, chief executive of TWZ, said the EV business plan will be concluded this year.
"We are in talks with Chinese EV manufacturers such as Lifan Motors and Dongfeng Motors but have yet to decide about types of EVs and services," Mr Puttachat said. "TWZ's spending for the EV business will be lower than 100 million baht because we will be an importer and distributor, and we hope to offer charging services and mobile apps for EV customers."
He said EV prices in overseas markets are still 20% above those of conventional cars.
But once EVs receive a good response from buyers and the government mandates banning petrol-fuelled cars in several metropolitan areas, the EV price tag will possibly decline by half in the future.
"Currently, several cities in China and Taiwan have set time frames to ban the use of conventional cars in inner cities in the next couple of years," Mr Puttachat said. "The Energy Regulatory Commission was told to finalise free power trade or selling power for EV charging stations because Thailand's power and energy laws now prohibit the trading of electricity in the private sector."
He said TWZ's EV business plan is in line with the company's diversification into renewable energy, planned for the past two years.
TWZ has developed a three-megawatt waste-to-energy power plant for industrial waste in Ayutthaya. The business is run through a subsidiary, Gear 2 Co.
This project will include a method of refuse-derived fuel and waste-recycling production at the same site with a production capacity of 200 tonnes a day.
TWZ will start operation of the 600-million-baht waste-to-energy power plant for plasma waste by 2019, including a method of refuse-derived fuel and extreme heat waste treatment.
Mr Puttachat said the plasma technology could also provide services for hazardous waste management, which is expected to generate new recurring revenue.
"TWZ plans to approach PTT Global Chemical Plc and Caltex Thailand to provide services for hazardous waste management," he said.
In 2019, TWZ expects total revenue to rise by 6% to 3.5 billion baht.
The company's key competency remains in the expansion of mobile handsets and telecommunication devices.
The target revenue will include the renewable energy business because the two projects will secure revenue in the fourth quarter of 2019.
TWZ plans to suspend new property development because it has seen no movement in the property sector since 2014.
"We will sell several plots in Pathum Thani and Nakhon Ratchasima, expecting to receive roughly 700 million baht," Mr Puttachat said.
He said TWZ plans to supply mobile handsets to replace the 2G spectrum under the operation of Advance Info Service Plc, planning to terminate the 2G services by October in order to adopt the 5G spectrum next year.
"TWZ has to supply mobile handsets to existing 2G users, expecting they will shift to the 3G or 4G spectrum," Mr Puttachat said.
