Hyundai’s ambitions in Southeast Asia extend beyond its existing electric vehicle (EV) assembly plants in Indonesia and Singapore. The company has now secured approval for a substantial 1 billion baht (RM126 million) investment in Thailand, aimed at expanding EV and battery assembly operations, according to the country’s Board of Investment (BOI).
Hyundai will collaborate with the Thonburi Automotive Assembly Plant in Samut Prakan, a region south of Bangkok known for its automotive industry, including factories for Mercedes-Benz, Toyota, and Nissan. This investment is part of Thailand’s broader initiative to establish itself as a major EV production hub.
The investment falls under the EV 3.5 project, which spans from 2024 to 2027. This initiative seeks to enhance Thailand’s manufacturing capabilities across the entire EV ecosystem, covering vehicles, batteries, components, and charging infrastructure.
The program includes incentives for manufacturers and subsidies for EV buyers, supporting the national objective for EVs to comprise at least 30% of total automotive production by 2030. The BOI reports that 18 carmakers from China, Japan, and Europe have either started or announced plans to build EVs in Thailand, with a total of 80 billion baht (RM10 billion) in investments already approved for the EV supply chain.
BOI Secretary-General Narit Therdsteerasukdi praised Hyundai’s entry into the Thai EV market, highlighting the benefits of Thailand’s robust supply chain, which will enable Hyundai to source up to a third of its raw materials and parts locally.
This is remarkable as some foreign carmakers, particularly from China, have shown reluctance to source parts locally, leading to the closure of numerous parts suppliers despite declining sales of traditional petrol and diesel vehicles due to the rise of subsidized EVs.