Kia is engaged in discussions with Thailand to establish an electric vehicle (EV) manufacturing facility in the Southeast Asian country, according to two government sources. Thailand aims to become a leading EV manufacturer in the region.
The talks are currently focused on the incentives that Kia is seeking from the Thai government. “They have a serious proposal that they’ve come with,” said one of the sources. “The ball is in their court.”
See also: Tesla in Talks with Thailand for Potential Factory
Both Kia and Thailand’s Board of Investment (BOI) have not responded to Reuters’ inquiries regarding the matter.
Thailand, known as Southeast Asia’s largest car producer and exporter, has been actively rolling out incentives, tax breaks, and other measures to position itself as a key player in EV production in the region. The country aims to convert about 30% of its annual production of 2.5 million vehicles into EVs by 2030, according to government plans.
See also: BMW Starts Construction of High-Voltage Battery Production Facility in Thailand
In addition to discussions with Kia, Thailand is also reportedly in talks with Tesla regarding a new facility that could include EV and battery production.
The Thai vehicle market, historically dominated by Japanese automakers like Toyota Motors and Honda Motor Co, has recently attracted significant investment commitments from Chinese EV manufacturers, with over $1.44 billion pledged to build production facilities.
