Hyundai is upping the ante for China’s most sensible EV maker by making plans to spend $28 million (1 billion baht) on a new EV and battery plant in Thailand. BYD leads the burgeoning “Strait of Asia” EV market, but Hyundai is poised to capture its share.
With EV sales on the rise in Thailand, Hyundai needs to spring into action. On Wednesday, the Board of Investment of Thailand (BOI) approved a $28 million (one billion baht) investment through the Hyundai subsidiary.
“The existing strong chain in Thailand will allow Hyundai to source up to a third of the raw materials and portions it needs from Thailand, thus supporting the local industry,” said Narit Therdsteerasukdi, secretary general of the BOI.
The investment will be used to identify a new electric vehicle assembly and battery plant in the country, in 2026.
Hyundai will work with Thonburi Automotive Assembly Plant Co. as a strategic partner to gain a foothold in the country.
Hyundai’s electric vehicle plant comes at a time when Thailand’s auto market is shifting towards electric vehicles. Although Japanese automakers, such as Toyota and Nissan, have traditionally dominated the Thai car market, Chinese EV manufacturers are stealing market share.
With almost 30,000 electric cars sold in Thailand last year, BYD is the country’s best-selling electric vehicle brand. And this, after entering the market just two years ago.
BYD maintained its momentum in 2024 with a 46% share of EV sales in Thailand in the first quarter. According to global market company Counterpoint, BYD is already the third-largest passenger car (EV or gasoline) logo in the country.
After opening last March, BYD officially opened its first vehicle factory in Thailand on July 4, 2024. Once national, the facility will produce 150,000 cars per year.
Known as “Strait Asia,” EV sales in Thailand have slowed due to the slowing economy, but are still up 50% from last year.
Thailand has set an ambitious target for 2021: by the end of the decade, 30% of cars manufactured in the country will be electric.
As part of its 30@30 plan, Thailand aims to consolidate its position as an EV hub for the future. Thailand is already the largest automobile manufacturing country in Southeast Asia and is among the top 10 in the world.
The Board of Investment has approved more than $2. 2 billion (80 billion baht) in investments in the electric vehicle chain. Meanwhile, 18 brands from China, Japan and Europe are already building electric cars in Thailand or plan to do so in the next two years.
Hyundai and BYD will lead Thailand’s transition to electric vehicles, leaving gasoline cars behind.
While BYD is known for its cheap electric vehicles, Hyundai has opened orders for its new Casper Electric, for just $23,000 (31. 5 million won) in Korea. At discounts, Hyundai said the Casper EV can be purchased for as little as $14,500 (20 million won).
After traveling all over Thailand on my honeymoon in May, I can say that Chinese cars are officially taking over.
The BYD Atto 3 and Dolphin models are taking over the streets of Thailand. Even if the majority of cars on the road (and not two-wheeled ones) were still Japanese, the emergence of Chinese electric cars cannot be missed.
Thailand is full of billboards selling Chinese electric cars from BYD, MG, and even XPeng. Classified ads are seen at the airport, on highways, and in high-traffic areas.
As the festival intensifies following competitive price cuts in China, EV manufacturers are expanding and Thailand is a hot spot. Japanese imports such as Toyota and Nissan have traditionally dominated the Thai car market. However, the arrival of Chinese electric cars is causing a radical upheaval.
Japanese automakers have been among the slowest to make the transition to electric vehicles and are paying for it in China and Southeast Asia, two of their most important markets.
Hyundai and BYD are taking advantage of Thailand’s competitive electric vehicle goals by making plans to expand in the region. I would expect to see an increase in electric car adoption in the coming years in Thailand, as gasoline cars are phased out.
Peter Johnson covers the automotive industry’s step-by-step transformation to electric vehicles. He is an experienced investor, money enthusiast and electric vehicle enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is one of the main reasons he pursued a career in investing. If he doesn’t tell you about his latest discoveries in the 10K, you can find him enjoying the outdoors or running.