Hyundai Motor is set to invest 1 billion baht ($28 million) to establish an electric vehicle and battery assembly facility in Thailand, the country’s Board of Investment (BOI) announced on Wednesday. The plant, situated southeast of Bangkok, is expected to commence operations in 2026.
The Thai electric vehicle sector is currently dominated by Chinese manufacturers such as BYD and Great Wall Motors, who have made the country a strategic hub for exporting vehicles across Southeast Asia. Hyundai’s investment underscores the growing competition and interest in the Thai market, which benefits from a well-established automotive supply chain.
According to the BOI, Hyundai plans to source at least one-third of its raw materials and components from within Thailand, bolstering the local industry and supply chain. This move aligns with Thailand’s position as the largest automotive manufacturing hub in the region, responsible for 55% of Southeast Asia’s electric vehicle sales in the first quarter, according to Counterpoint Research.
The rise in EV sales is increasingly challenging the market share of traditional internal combustion engine vehicles, historically dominated by Japanese and South Korean automakers. Hyundai’s entry into Thailand’s EV market reflects a strategic push to expand its presence in Southeast Asia.
