The Thailand Board of Investment approved Hyundai’s 1 billion baht investment to assemble battery electric vehicles and batteries by 2026, supporting the EV 3.5 package and enhancing Thailand’s EV production capabilities.
The Thailand Board of Investment (BOI) 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.
The Thailand Board of Investment (BOI) has approved Hyundai Mobility Manufacturing’s 1 billion baht (USD 28 million) investment to start local assembly of battery electric vehicles (BEV) and batteries by 2026. This project supports Thailand’s EV 3.5 package, enhancing the nation’s role as an EV hub.
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.
Thailand’s 30@30 policy aims for electric vehicles (EVs) to make up at least 30% of the country’s total motor vehicle production by 2030. As the largest automotive production hub in Southeast Asia and ranking in the top 10 globally, Thailand has attracted 18 manufacturers from China, Japan, and Europe to either start producing EVs in the country or announce plans to do so within 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.
Source : Thailand BOI Approves Hyundai Mobility’s Project to Assemble BEV Electric Cars and Batteries
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