Hyundai Mobility Manufacturing (Thailand), based in South Korea, plans to produce battery electric vehicles (BEVs) and batteries in Thailand by 2026 following the approval of its 1-billion-baht project by the Board of Investment (BoI).
The announcement was made by the board after greenlighting the project under the second-phase electric vehicle (EV) incentive package, known as EV3.5. This initiative provides incentives to manufacturers and subsidies for consumers who purchase EVs.
The EV3.5 program aims to stimulate growth in the EV industry from 2024 to 2027, offering subsidies, reduced import duties for fully assembled cars, and cuts in excise tax.
Manufacturers participating in EV3.5 must begin producing EVs domestically by 2026.
“Hyundai’s entry into Thailand’s EV market is a significant positive development, highlighting the appeal of Thailand as both a manufacturing hub and a vital market,” commented Narit Therdsteerasukdi, secretary-general of the BoI.
Hyundai’s factory will be situated in Samut Prakan, close to Bangkok.
The assembly plant will operate in partnership with Thonburi Automotive Assembly Plant Co., a strategic business partner of Hyundai.
“Thailand’s robust existing supply chain will enable Hyundai to source at least a third of the raw materials and parts it requires locally, thereby benefiting the domestic industry,” added Mr. Narit.
Hyundai joins a number of foreign EV manufacturers encouraged to contribute to the growth of the EV sector in Thailand.
As part of the 30@30 policy, Thailand aims for EVs to represent at least 30% of total motor vehicle production by 2030, targeting the production of 725,000 zero-emission vehicles, 675,000 electric motorcycles, and 34,000 electric buses and trucks.
To date, 18 manufacturers from China, Japan, and Europe have either commenced EV production in Thailand or announced plans to do so within the next two years.
The BoI has approved projects related to the EV supply chain, totaling over 80 billion baht in investment.
According to the Global EV Outlook 2024, released by the International Energy Agency, electric car sales globally surged by approximately 25% in the first quarter of 2024 compared to the same period last year. EV sales are projected to reach around 17 million in 2024, accounting for more than one in five cars sold worldwide.
