South Korean automaker Hyundai Motor Company will 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.
Thailand’s rapidly growing electric vehicle sector is currently led by Chinese manufacturers such as BYD and Great Wall Motors, which utilize the country as a hub for exporting vehicles across Southeast Asia.
The new Hyundai factory, planned to be situated just southeast of Bangkok, is set to begin production in 2026, according to a BOI statement.
“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,” said BOI Secretary General Narit Therdsteerasukdi.
Electric vehicle sales are on the rise across Southeast Asia, driven by companies like BYD, which are gradually capturing market share from traditional internal combustion engine vehicles produced by Japanese and Korean firms.
Thailand, the region’s largest auto manufacturing hub, accounted for 55% of all Southeast Asia’s EV sales in the first quarter, according to Counterpoint Research.
