Posted on 08 Mar 2024
South Korean automaker Kia is now reportedly in talks with the Thai government to establish a new electric vehicle factory, according to anonymous government sources.
The sources disclosed to Reuters that the focus of the negotiation is on incentives Kia is seeking from local governments.
So far, Kia and the Thailand Board of Investment (BOI) have not responded to the news, or to Kallanish questions.
BOI had mentioned in January that Kia is considering investing in Thailand.
At the same time, there are reports that Tesla is also seeking expansion in this country and the government has promised incentives.
Supakorn Congsomjit of the Prime Minister's Office of Thailand revealed that the Thai government is providing Tesla with 100% green energy to operate the facility, which may produce either EVs or batteries.
The country has been long dominated by Japanese brands but is now seeing more investment from all over the world.
Surapong Paisitpattanapong, Federation of Thai Industries' vice chairman and Thai Automotive Industry Association spokesperson, said in a recent interview conducted by China's state Xinhua News Agency: "According to data from the Federation of Thai Industries, Thailand's passenger car sales in 2023 reached approximately 407,000 units, of which more than 73,000 sold were battery electric vehicles, an on-year increase of 603.66%."
"Chinese brands such as SAIC MG, Great Wall, BYD, GAC, Changan and Neta have all launched EVs in the Thai market and have been popular among consumers. According to data from the Land Transport Department of Thailand, more than 80% of newly licensed BEVs in Thailand in 2023 were Chinese brands."
In addition, he expressed the country's ambition of becoming an influential local centre. "It is hoped that the EV produced in Thailand can not only meet the demand of the Thai market, but also be exported to other countries."
Source:Kallanish
