South Korean automotive giant Hyundai Motor has revealed its plan to invest 1 billion baht ($28 million) in the production of electric vehicles under the Ioniq brand in Thailand, following approval from the Board of Investment.
The commencement of production is slated for early 2026, with Thonburi Automotive Assembly managing the assembly processes as a long-time partner.
Hyundai Mobility Manufacturing (Thailand) Co., Ltd. has announced that this investment will facilitate the creation of EV and battery manufacturing units in Thailand.
This initiative aligns with the Thai government’s EV3.5 policy, which aims to bolster the electric vehicle sector.
Jae Gyou Chung, CEO of Hyundai Mobility Manufacturing (Thailand), emphasized Thailand’s role as a pivotal hub for Hyundai in the ASEAN region. Supported by the Thai government’s EV3.5 initiatives, Hyundai is poised to begin production in early 2026.
“We have received official approval from the BOI to invest in the production of Ioniq electric vehicles and batteries,” Jae said.
“This project is a result of collaboration between Hyundai Mobility Manufacturing (Thailand) and a key partner, a leading domestic automotive assembly plant,” he added.
Jae Gyou Chung likely referred to Thonburi Automotive Assembly Co., Ltd. as the domestic assembly plant, which is known for assembling Mercedes-Benz vehicles at its Samrong facility in Samut Prakan province.
Notably, Hyundai previously assembled its Sonata model at this plant almost 16 years ago.
The thriving EV market in Thailand is largely influenced by Chinese automakers such as BYD (Build Your Dreams) and Great Wall Motors, which utilize Thailand as a production base for vehicle exports throughout Southeast Asia.
The surge in EV sales across Southeast Asia is predominantly led by BYD, challenging the market share of traditional internal combustion engine vehicles, which have been traditionally dominated by Japanese and Korean manufacturers.
Thailand stands as the leading automotive manufacturing hub in the region, capturing 55% of Southeast Asia’s total EV sales in the first quarter, as reported by Counterpoint Research.
