Hyundai Motor will invest $28 million in electric vehicle (EV) and battery production in Thailand. The country’s Board of Investment (BOI) recently approved Hyundai Mobility Manufacturing’s application to invest.
The South Korean automaker plans to start producing EVs and batteries by 2026. It will establish an assembly plant in Samut Prakan Province, near Bangkok.
“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,” commented Narit Therdsteerasukidi, BOI’s Secretary General.
Earlier this year, Thailand issued new EV subsidies called the EV 3.5 package, which will apply for four years from 2024 to 2027. The subsidies and their guidelines are below.
- For electric passenger cars priced not exceeding $58,000 USD, with battery capacity not less than 50 kWh will be subsidized in range between $1,450- $2,900 USD per unit. And those with battery capacity less than 50 kWh will be subsidized $580 – $1,450 USD per unit.
- For electric pickup trucks priced not exceeding $58,000 USD, with battery capacity not less than 50 kWh will be subsidized in range between $1,450 – $2,900 USD per unit.
- For electric motorcycles cars priced not exceeding $4,350 USD, with battery capacity not less than 3 kWh will be subsidized in range between $145 – $290 USD per unit.
- Electric passenger cars with prices not exceeding $200,000 will have a reduced excise tax from 8% to 2%.
Thailand also released manufacturing mandates. For instance, the government reduced import duties up to 40% for electrical passenger cars priced at $58,000 or below. The reduced duties apply to imported Completely Built-Up Units (CBUs) from 2024 to 2025. By 2026, EV manufacturers must commit to producing at least two electric vehicles within Thailand.
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