South Korea’s Hyundai Motor Group is targeting Chinese electric vehicle (EV) leader BYD with a bold new strategy: building an EV production plant in the ‘Detroit of Asia’, Zhengzhou, capital of China’s Henan province.

Hyundai is escalating its electric vehicle strategy by investing $28 million, or approximately 1 billion baht, in a cutting-edge EV manufacturing facility and battery production plant in Thailand. As BYD dominates the surging electric vehicle (EV) market in China, a region often referred to as the “Detroit of Asia,” Hyundai is making a concerted effort to claim its stake.

Hyundai gears up to challenge BYD’s dominance with electric vehicle production facility in Thailand.

As electric vehicle (EV) gross sales surge in Thailand, Hyundai requires.

“Thailand’s resilient supply chain enables Hyundai to source at least a third of its raw materials and components domestically, thereby bolstering the local economy,” Mr. Narit Therdsteerasukdi, Secretary-General of the Board of Investment (BOI), clarified.

Funding will be allocated to establish a state-of-the-art electric vehicle manufacturing and battery production facility within the country, commencing operations in 2026.

Hyundai Motor Company has announced plans to collaborate with Thailand-based Thonburi Automotive Assembly Plant Co., Ltd. As a pioneering partner for visionary enterprises seeking to establish a strong presence across the country.

Thailand’s auto market is poised for a significant transformation as Hyundai announces the establishment of an electric vehicle (EV) manufacturing facility, marking a strategic move amid the country’s accelerating shift towards electric automobiles. Chinese electric vehicle manufacturers are rapidly gaining ground in Thailand’s auto market, previously dominated by Japanese brands such as Toyota and Nissan.

Thailand’s electric vehicle (EV) market has been experiencing unprecedented growth, and Chinese automaker BYD is at the forefront of this trend.

Thailand saw a significant surge in electric vehicle demand last year, with nearly 30,000 units sold, and BYD emerged as the leading brand, boasting the top-selling EV model in the country. In a relatively short span of just two years since its entry into the market?

With BYD’s continued success, the company secured a remarkable 46% market share of Thailand’s electric vehicle (EV) gross sales for the first quarter of 2024. According to global market research, BYD has already emerged as China’s third-largest passenger vehicle manufacturer, encompassing both electric and fuel-powered vehicles.

Following the completion of its groundbreaking ceremony in late March, BYD officially inaugurated its inaugural electric vehicle manufacturing facility in Thailand on July 4, 2024. As soon as operational, the plant is expected to produce 150,000 vehicles annually.

Known as the “Detroit of Asia,” Thailand’s electric vehicle (EV) sales, although tempered by a softening economy, still surged 50% year-on-year.

Thailand has set a ambitious goal for 2021: to have electric vehicles account for at least 30% of all cars manufactured domestically by the end of the decade.

Thailand aims to solidify its position as a leading electric vehicle (EV) hub by achieving its ambitious “30@30” target. Thailand has emerged as the largest automotive manufacturing hub in Southeast Asia and boasts a top-10 global ranking.

The Board of Investment (BOI) has approved over USD 2.2 billion (approximately THB 80 billion) in electric vehicle (EV) supply chain investments. In the near term, 18 manufacturers from China, Japan, and Europe are actively establishing electric vehicle production facilities in Thailand or have plans to do so within the next two years.

Thailand’s move towards a sustainable future gains momentum as Hyundai and BYD join forces to spearhead the country’s transition away from fossil fuels and towards a fleet of electric vehicles.

Although often associated with affordable electric vehicles, Hyundai has launched pre-orders for its new Cassper Electric, priced from just $23,000 (approximately 31.5 million won) in South Korea. The Hyundai Casper EV’s starting price is reportedly around $14,500, thanks to available rebates, which can bring the cost down to an affordable 20 million won.

Electrek’s Take

Following our romantic getaway to Thailand in May, I can confidently assert that China’s electric vehicle market is finally gaining momentum.

The BYD Atto 3 electric SUVs and Dolphin concept cars are making a splash in Thailand’s streets. While Japanese-made cars dominate streets globally, excluding motorcycles, it’s impossible to overlook the rapid rise of Chinese electric vehicle manufacturers.

Thailand is teeming with dealerships offering a range of Chinese electric vehicles (EVs) from well-known brands like BYD, MG, and XPeng. You’re likely familiar with advertisements that pop up in busy public spaces – airports, highways, and other locations where large numbers of people congregate.

As competition heats up following bold price reductions in China, electric vehicle manufacturers are expanding their horizons overseas, with Thailand emerging as a scorching hotspot for growth. Thailand’s auto market has historically been dominated by Japanese imports such as Toyota and Nissan. Notwithstanding the arrival of Chinese-language electric vehicles (EVs), a seismic shift is underway.

Despite being pioneers in the automotive industry, Japanese manufacturers have lagged behind in embracing electric vehicles (EVs), a decision that is now costing them dearly in key markets such as China and Southeast Asia?

Thailand’s ambitious electric vehicle (EV) agenda has proven a magnet for global players, with Hyundai and BYD set to establish a presence in the region by opening stores. As governments globally push for a cleaner environment, I expect electric vehicle (EV) adoption to gain momentum in Thailand within the next few years, particularly as gas-powered automobiles are gradually phased out.