Hyundai Mobility Thailand, a subsidiary of South Korea's Hyundai Motor Group, is preparing to expand its electric vehicle business in the country within September under a 1-billion-baht investment in a move to compete with other EV manufacturers.
"We will announce our investment plan within September after completing further talks with the Board of Investment [BoI] on details of its investment incentives," said Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand.
The BoI said earlier Hyundai plans to produce battery EVs and batteries in Thailand by 2026 after its 1-billion-baht project received approval from the board.
The approval was made in early August under the second-phase EV incentive package known as EV3.5.
The government provides incentives to manufacturers as well as subsidies to consumers purchasing EVs.
EV3.5, which aims to propel EV industry growth between 2024 and 2027, comprises subsidies, reduced import duties for fully assembled cars and an excise tax cut.
EV manufacturers participating in EV3.5 are required to produce EVs in Thailand from 2026.
"We are waiting to sign a memorandum of understanding with the Excise Department on the investment project under EV3.5," said Mr Wallop.
Hyundai is monitoring the ongoing process of establishing the new government, led by Prime Minister Paetongtarn Shinawatra who recently succeeded Srettha Thavisin.
"South Korean investors want to see continuity in the government's policy to support foreign investment as any change in the policy would affect their business plans," said Mr Wallop.
Hyundai called on the new government to launch new measures to boost the economy, better deal with weak consumer spending and solve sluggish car sales in the domestic market.
The company expects its car sales in Thailand to stand at 5,100-5,200 units in 2024, a decrease from 5,700 last year.
During the first six months of this year, the company has already sold 2,400 units, a year-on-year increase of 5%.
Mr Wallop suggested the authorities consider offering a tax reduction to purchasers of new cars in order to stimulate domestic car sales.
He expects the 2024 Big Motor Sale, currently being held at the Bangkok International Trade & Exhibition Centre, to help boost car sales.
The annual event runs from Aug 23 through Sept 1.
