Hyundai Motor Company, through its subsidiary Hyundai Mobility Manufacturing (Thailand) Co., Ltd., has received approval from the Thailand Board of Investment (BOI) for a significant investment in the local assembly of battery electric vehicles (BEVs) and their batteries. This project, valued at 1 billion baht (approximately USD 28 million), is set to commence operations in 2026 and is part of Thailand's strategic EV 3.5 package. This initiative aims to position Thailand as a leading hub for electric vehicle production by promoting investment across the entire EV ecosystem, including cars, batteries, key parts, and charging stations.

Strategic Investment

- Investment Value: 1 billion baht (USD 28 million).

- Project Timeline: Operations are scheduled to begin in 2026.

- Partnership: Hyundai will collaborate with Thonburi Automotive Assembly Plant Co., Ltd. as a strategic business partner.

- Local Sourcing: Hyundai plans to source at least one-third of its raw materials and parts from within Thailand, leveraging the country's robust supply chain.

Thailand's EV 3.5 Package

The EV 3.5 package, covering 2024 to 2027, provides incentives to manufacturers and subsidies to consumers purchasing EVs. This initiative is part of Thailand's broader 30@30 policy, which aims for electric vehicles to comprise at least 30% of the country's total motor vehicle production by 2030. Thailand, already the largest automotive production hub in Southeast Asia, ranks among the top 10 globally. The country has attracted 18 manufacturers from China, Japan, and Europe, who have either started or announced plans to begin EV production in Thailand over the next two years.

Global and Local Impact

The BOI has approved projects with a total investment value exceeding 80 billion baht in the EV supply chain. According to the Global EV Outlook 2024 by the International Energy Agency, global electric car sales grew by approximately 25% in the first quarter of 2024 compared to the same period in 2023. It is projected that EV sales could reach 17 million units in 2024, accounting for more than 20% of all cars sold worldwide.

Hyundai's investment in Thailand underscores the country's attractiveness as a manufacturing base and a significant market for electric vehicles. This development is expected to bolster Thailand's position as a key player in the global EV market.