The Thailand Board of Investment (BOI) has approved investment promotion applications worth a combined THB1bn (US$28m) by Hyundai Mobility Manufacturing (Thailand), a unit of Hyundai Motor Company, to start local assembly of battery electric vehicles (BEV) and the batteries that power them in 2026.
The Hyundai project is in the second phase of Thailand's plan to become a production hub for electric vehicles, known as the EV 3.5 package, which aims to promote investment in manufacturing covering the entire EV industry ecosystem.
As part of the EV 3.5 package, which covers 2024-2027, the government provides incentives to manufacturers as well as subsidies to consumers purchasing EVs.
Narit Therdsteerasukdi, secretary general of the BOI, said: "Hyundai's entry in Thailand's EV sector is a very positive development, confirming the attractiveness of Thailand as both a manufacturing base and an important market."
The operations will be conducted with Thonburi Automotive Assembly Plant as a business partner.
Currently 18 manufacturers from China, Japan and Europe have either started making EVs in Thailand or announced they will begin in the next two years.
The BOI has already approved projects worth THB80bn in the EV supply chain.
Thailand said it expected EVs to account for at least 30% of total motor vehicle production in the country by 2030.
