Construction likely to start in the middle of next year with an investment of 2 billion baht ($57 million).
Hybrid cars are significantly more fuel-efficient in India and China than they are in the US.
The device, called the Copenhagen Wheel, is installed as part of a rear hub of a bike wheel and is packed with a proprietary computer, batteries and sensors.
Over the past five years, the clamour about electric vehicles (EVs) becoming a feasible transport option has become loud.
Toyota Motor Corp said that it has developed a plug-in hybrid vehicle for public road tests.
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