BANGKOK, Aug. 7, 2024 /PRNewswire/ — The Thailand Board of Investment (BOI) today approved investment promotion applications worth a combined 1 billion baht (USD28 million) by Hyundai Mobility Manufacturing (Thailand) Co., Ltd., a unit of Korea’s Hyundai Motor Company, to start in 2026 the local assembly of battery electric vehicles (BEV) and the batteries that power them.
Key Takeaways
- The Thailand Board of Investment approved Hyundai Mobility Manufacturing’s 1 billion baht investment to start local assembly of battery electric vehicles and batteries by 2026, supporting Thailand’s EV industry.
- Thailand’s EV 3.5 package aims to promote investment in manufacturing covering the entire EV industry ecosystem, positioning the country as an EV hub with government incentives and consumer subsidies.
- The entry of Hyundai in Thailand’s EV sector signifies the country’s strong supply chain and its goal for EVs to represent at least 30% of total motor vehicle production by 2030, aligning with the global trend of growing electric car sales.
The Hyundai project is placed under the second phase of Thailand’s plan to become a production hub for electric vehicles, known as the EV 3.5 package, which aims to promote investment in manufacturing covering the entire EV industry ecosystem, from cars to batteries, key parts, and charging stations. As part of the EV 3.5 package, which covers a period of 4 years (2024-2027), the government provides incentives to manufacturers as well as subsidies to consumers purchasing EVs.
“Hyundai’s entry in Thailand’s EV sector is a very positive development, confirming the attractiveness of Thailand as both a manufacturing base and an important market,” said Mr. Narit Therdsteerasukdi, Secretary General of the BOI.
“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.”
The operations will be conducted with Thonburi Automotive Assembly Plant Co., Ltd. as strategic business partner.
The facility will also assemble an equal amount of EV batteries.
Under its 30@30 policy, Thailand expects EVs to represent at least 30% of the total motor vehicle production in the country by the year 2030. Thailand is the largest automotive production hub in Southeast Asia, and ranks in the top 10 in the world. So far, 18 manufacturers from China, Japan and Europe have either started making EVs in Thailand or announced they will begin over the next two years.
The BOI has already approved projects with a total investment value of over 80 billion baht in the EV supply chain.
According to the Global EV Outlook 2024 published by the IEA, in the first quarter of 2024, electric car sales around the world grew by around 25% compared with the first quarter of 2023. EV sales could reach around 17 million in 2024, accounting for more than one in five cars sold worldwide.
