Hyundai Investing RM125 Million in EV and Battery Production Plant in Thailand

Hyundai Motor plans to invest THB 1 billion (RM125 million) to establish a new production facility in Thailand dedicated to assembling electric vehicles (EVs) and EV batteries, reported  Nikkei Asia.

This move marks a significant expansion for Hyundai into Southeast Asia, where Thailand has become a key hub for the automotive industry, particularly in the rapidly growing EV segment.

Production is scheduled to start in 2026, and the new factory will be situated southeast of Bangkok, according to a statement released by Thailand's Board of Investment (BOI).

Chinese automakers BYD and Great Wall Motors presently control the majority of Thailand's electric vehicle industry. With a 150,000 vehicle annual production capability, BYD inaugurated its first Southeast Asian production facility in Thailand just this month.

The BOI went on to say that Hyundai will greatly benefit from Thailand's established supply chain. Hyundai will be able to obtain at least one-third of the parts and raw materials required from Thailand thanks to this strong supply network, which will decrease reliance on imported parts and provide chances for regional vendors.

Additionally, Hyundai's investment coincides with Southeast Asia's growing electric vehicle (EV) sales, which are steadily eating away at the market share that South Korean and Japanese manufacturers who specialise in ICE vehicles have historically enjoyed.

On the flipside, companies including Suzuki, Subaru, and Honda recently announced plans of shutting down their production plants in Thailand.

Thailand is still the largest EV market in Southeast Asia; data from Counterpoint Research shows that as of just the first quarter of this year, it accounted for 55% of all EV sales in the area.