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Hyundai Designates B1 Billion for Electric Vehicle Growth

Hyundai Designates B1 Billion for Electric Vehicle Growth

Hyundai Mobility Thailand, a subsidiary of South Korea’s Hyundai Motor Group, is set to expand its electric vehicle (EV) operations in the country with a 1-billion-baht investment, aiming to strengthen its position against other EV manufacturers. The announcement of this investment is expected in September, following further discussions with the Board of Investment (BoI) regarding the specifics of investment incentives.

Wallop Chalermvongsavej, the managing director of Hyundai Mobility Thailand, stated, “We will reveal our investment plan within September after we finalize talks with the Board of Investment [BoI] concerning investment incentives.”

Earlier, the BoI indicated that Hyundai plans to manufacture battery electric vehicles (BEVs) and batteries in Thailand by 2026, following the approval of its 1-billion-baht project in early August, categorized under the second phase of the EV incentive package known as EV3.5. This government initiative includes incentives for manufacturers and rebates for consumers purchasing EVs.

EV3.5 aims to stimulate the growth of the EV industry from 2024 to 2027, offering subsidies, reduced import duties on fully assembled vehicles, and cuts to excise taxes. Manufacturers participating in this initiative must start producing EVs in Thailand by 2026.

Mr. Wallop mentioned, “We are awaiting the signing of a memorandum of understanding with the Excise Department regarding the investment project under EV3.5.”

Hyundai is closely observing the developments related to the new government led by Prime Minister Paetongtarn Shinawatra, who recently took over from Srettha Thavisin. According to Mr. Wallop, “South Korean investors seek stability in government policies that support foreign investment, as any changes could impact their business plans.”

Hyundai urged the new administration to implement measures to invigorate the economy, address declining consumer spending, and tackle sluggish car sales in the domestic market. The company projects its car sales in Thailand to be between 5,100 and 5,200 units in 2024, down from 5,700 units last year.

In the first six months of the year, the company has already sold 2,400 units, marking a 5% increase year-on-year. Mr. Wallop suggested that authorities consider offering tax reductions for new car buyers to help stimulate domestic sales. He is hopeful that the 2024 Big Motor Sale, currently taking place at the Bangkok International Trade & Exhibition Centre from August 23 to September 1, will contribute to boosting car sales.

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