Hyundai unit may adjust output post-2026

Hyundai Mobility Thailand, a subsidiary of South Korea’s Hyundai Motor Group, plans to produce 5,000 battery electric vehicles a year at its plant in Samut Prakan in 2026, but may need to adjust future volume as domestic car sales sag.
Under the government’s EV 3.5 electric vehicle incentive scheme, the company is committed to producing battery-powered cars locally, amounting to two times the number of EVs it imports for sale in the country.
Chinese EV makers granted incentives under the EV 3.0 scheme are required to locally produce 1.5 times the number of EVs they import.
However, given the stagnant Thai automotive sector, Chinese manufacturers are in discussions with the authorities concerning the possibility of relaxing this condition.
“We are monitoring what the result will be,” said Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand.
Domestic car sales have been falling for months since the banks tightened their lending criteria for auto loans for fear of non-performing loans amid high levels of household debt in the country.
Under a 1-billion-baht investment to expand its EV business in Thailand, the company will begin by assembling the Ioniq 5, an electric sports utility vehicle that was launched in Bangkok yesterday.
The car is priced at 3.79 million baht, with the company targeting buyers in the premium car segment.
Hyundai will initially import Ioniq 5s for sale Thailand before commencing its production here in 2026.
“We expect Ioniq 5 sales to reach 1,500 units next year,” said Mr Wallop.
Hyundai is required to produce local versions of EVs after joining the EV 3.5 scheme, which provides incentives to manufacturers as well as subsidies to consumers purchasing EVs.
EV 3.5, 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 EV 3.5 are required to produce EVs in Thailand from 2026.
Hyundai expects its car sales, including EVs and internal combustion engine-powered cars, to reach 5,000 units this year. During the first eight months, the company sold 3,500 cars.
Mr Wallop called on the government to reduce excise tax to boost domestic car sales. An increase in total car sales could offset the state’s reduced revenue following such a tax reduction, he said.