Hyundai to invest USD 28 million in Thai electric vehicle assembly and battery facility

Hyundai Motor Company is set to invest 1 billion baht (USD 28 million) to establish a new facility in Thailand dedicated to assembling electric vehicles (EVs) and batteries, according to a statement from the country’s Board of Investment (BOI) on Wednesday.

The new Hyundai plant, located just southeast of Bangkok, is scheduled to begin production in 2026. This investment underscores Hyundai's commitment to expanding its presence in Thailand's burgeoning EV sector, which has seen significant growth and is currently dominated by Chinese manufacturers such as BYD and Great Wall Motors. These companies have utilised Thailand as a strategic manufacturing base for exporting vehicles throughout Southeast Asia.

BOI Secretary General Narit Therdsteerasukdi highlighted that Hyundai's investment will benefit from Thailand’s robust supply chain. "Hyundai will be able to source at least a third of its raw materials and parts locally, thereby supporting the Thai industry," Therdsteerasukdi said.

The electric vehicle market in Southeast Asia is experiencing rapid growth, with BYD leading the charge and capturing a significant portion of the market traditionally dominated by internal combustion engine vehicles from Japanese and Korean automakers.

Thailand, which is the largest auto manufacturing hub in the region, represented 55% of Southeast Asia's EV sales in the first quarter of this year, according to Counterpoint Research. Hyundai’s new facility is expected to further bolster the country’s position as a key player in the EV industry and contribute to the growth of the local automotive sector.