Hyundai to Invest $28 Million in Thailand for EV Assembly
Hyundai Motor Company is making a significant move towards expanding its electric vehicle (EV) footprint by investing 1 billion baht ($28 million) in Thailand. This substantial investment will be used to set up a facility dedicated to the assembly of electric vehicles and the production of EV batteries. The announcement was made by the country's Board of Investment (BOI) on Wednesday.
Facility Location and Production Timeline
The new factory, strategically located just southeast of Bangkok, is slated to begin production in 2026. According to the BOI statement, this facility will bolster Hyundai's position in the emerging EV market in Southeast Asia.
Thailand's Dominance in EV Sector
Thailand has become a hotspot for EV manufacturing, with Chinese carmakers such as BYD and Great Wall Motors leading the charge. These companies use Thailand as a base for exporting vehicles throughout Southeast Asia, capitalizing on the region's growing demand for electric vehicles.
Local Sourcing and Economic Impact
A key advantage for Hyundai is Thailand's strong, existing supply chain. BOI Secretary General Narit Therdsteerasukdi noted that Hyundai would be able to source a significant portion—at least a third—of its raw materials and parts locally. This move supports the local industry and boosts Thailand's economic landscape.
Surge in EV Sales
Electric vehicle sales are on the rise across Southeast Asia, driven primarily by Chinese manufacturers like BYD. These sales are beginning to overshadow the internal combustion engine car market, historically dominated by Japanese and Korean firms. According to Counterpoint Research, Thailand accounted for 55% of all EV sales in Southeast Asia during the first quarter, highlighting the country's pivotal role in the region's EV market.
Conclusion
Hyundai's $28 million investment in Thailand's EV sector underscores the growing importance of electric vehicles in Southeast Asia. By setting up a new assembly and battery production facility, Hyundai aims to capitalize on the region's burgeoning demand, leveraging local resources to bolster its supply chain and support the local economy.
