Thailand, which has become a manufacturing base for Japanese, American and, increasingly, Chinese automakers, is now also attracting Korean automakers.
The Board of Investment of Thailand said on Wednesday that Hyundai will invest 1 billion baht ($28.3 million) to build a facility to assemble electric vehicles and batteries. The new factory will be located southeast of Bangkok and is scheduled to start production in 2026.
Thailand's government is trying to shift its auto industry to electric vehicle manufacturing and is offering tax incentives to lure EV makers, with Chinese EV makers such as BYD and Great Wall Motors opening factories in the Southeast Asian country.
According to the Thailand Board of Investment, Hyundai's project is part of a plan called the EV 3.5 package, which aims to promote investment in Thailand-based manufacturing across the EV ecosystem.
The investment in Thailand is not Hyundai's first foray into the EV sector in Southeast Asia: the South Korean automaker opened an assembly facility and innovation centre for the Ioniq 5 and 6 in Singapore last November.
Thailand's EV situation
Japanese brands have traditionally dominated Thailand's consumer market, with automakers such as Toyota and Nissan having assembly plants in the Southeast Asian country as early as the 1960s.
But in recent years, Chinese EV brands have become increasingly popular thanks to Thai government subsidies for consumers who buy EVs.
Data from market research firm Counterpoint Research showed that EV sales surged in Southeast Asia in the first quarter of this year, with battery electric vehicle sales up 104% year-on-year, and Thailand accounting for 55% of total BEV sales.
BYD captured 47% market share, driving a surge in regional sales.
Thailand is BYD's largest overseas market, and the Chinese EV giant officially opened its first factory in Southeast Asia last month.
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