Hyundai’s 1-billion-baht ‘charge’ lights up Thailand’s electric future

Hyundai Mobility Manufacturing (Thailand) is set to produce battery electric vehicles (BEVs) and batteries in Thailand by 2026, following the approval of its 1-billion-baht project by the Board of Investment (BoI).

The announcement came after the project received approval under the second-phase electric vehicle (EV) incentive package, known as EV3.5, which was confirmed yesterday, August 8.

The Thai government offers incentives for manufacturers and subsidies for consumers purchasing EVs. EV3.5, aimed at boosting the EV industry between 2024 and 2027, includes subsidies, reduced import duties for fully assembled cars, and an excise tax cut.

As part of EV3.5, manufacturers must start producing EVs domestically by 2026, said Narit Therdsteerasukdi, Bol Secretary-General.

“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.”

The new Hyundai factory will be located in Samut Prakan, near Bangkok, and will be operated in partnership with Thonburi Automotive Assembly Plant Co, Hyundai’s strategic business partner, said Narit.

“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.”

Hyundai joins several foreign EV manufacturers encouraged to develop the EV industry in Thailand. Under the 30@30 policy, Thailand aims for EVs to make up at least 30% of total motor vehicle production by 2030, targeting the production of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

Eighteen manufacturers from China, Japan, and Europe have either commenced EV production in Thailand or announced plans to start within the next two years. The BoI has approved projects with a combined investment value exceeding 80 billion baht in the EV supply chain.

According to the Global EV Outlook 2024 by the International Energy Agency, electric car sales worldwide grew by around 25% in the first quarter of 2024 compared to the same period last year. EV sales are projected to reach approximately 17 million in 2024, representing over one in five cars sold globally.