Hyundai Electrifies Thailand: $28 Million EV Plant To Supercharge Southeast Asia’s Auto Hub

Hyundai Motor Company is set to invest 1 billion baht ($28 million) to establish an electric vehicle (EV) assembly and battery plant in Thailand, aiming to carve out its share in the country’s rapidly growing EV market.

The Thailand Board of Investment (BOI) approved Hyundai’s investment application. The new plant, to be located in Samut Prakan Province near Bangkok, is scheduled to start operations in 2026. Hyundai plans to partner with Thonburi Automotive Assembly Plant Co. as a strategic business ally to gain a foothold in the Thai market.

BOI Secretary General Narit Therdsteerasukdi expressed about Hyundai’s presence in Thailand’s production landscape stating, “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.”

Thailand has set an ambitious goal to have 30% of its domestically produced vehicles be electric by 2030. The country is already Southeast Asia’s largest auto manufacturing hub and ranks in the top 10 globally. To support this transition, the Thai government has approved over $2.2 billion in EV supply chain investments and introduced new EV subsidies for 2024-2027 for its 30@30 plan.

BYD’s Dominance In Thailand

As of now, BYD dominates Thailand’s EV market holding a 46% share of EV sales in Q1 2024. Recently, the company opened its first Thailand EV plant in July 2024, with an annual capacity of 150,000 units and employ around 10,000 workers.

Read More: BYD Expands Global Footprint With First Southeast Asian EV Plant In Thailand

As the competition heats up, Hyundai’s strategic move not only strengthens its position in the Southeast Asian market but also contributes to Thailand’s goal of becoming a major EV hub in the region. As EV adoption continues to accelerate, the investment signals a significant shift in the automotive landscape of Southeast Asia’s largest vehicle production nation.

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