According to information released by Thailand’s Board of Investment (BOI) on Wednesday, South Korean automaker Hyundai Motor Company would invest 1 billion baht ($28 million) to establish a factory for the assembly of electric vehicles and batteries.
Chinese automakers like BYD and Great Wall Motors presently control the majority of Thailand’s burgeoning electric vehicle market. These companies use Thailand as a base of operations for producing automobiles that they then export throughout Southeast Asia.
A BOI announcement states that in 2026, the Hyundai facility will begin production. It is planned to be situated somewhat to the southeast of Bangkok, the country’s capital.
“Thailand’s strong existing supply chain will allow Hyundai to source not less than a third of the raw materials and parts it needs from within Thailand, thus supporting the local industry,” BOI Secretary General Narit Therdsteerasukdi said.
Southeast Asian electric vehicle sales are soaring, driven by BYD, and are beginning to displace the market for internal combustion engine cars, which is controlled by Korean and Japanese companies.
As per Counterpoint Research, 55% of all EV sales in Southeast Asia during the first quarter came from Thailand, which is the largest hub for auto manufacturing in the area.