Korean automaker Kia is exploring plans to construct a production facility in Thailand with an annual capacity of 250,000 vehicles.
This move is seen as part of the efforts by Kia's parent company, Hyundai Motor Group, to enter the ASEAN market, and is also one of the measures in the group's strategy to diversify its global production bases. As Hyundai Motor Group's sales in the Chinese market have been sluggish, the group had previously announced its plans to manufacture cars in India.
Currently, Kia has overseas production bases in the USA, China, India, Slovakia, and Mexico. The Thailand factory will be its sixth global production base.
For the Hyundai Motor Group, Kia's factory in Thailand will be the group's second production base located in an ASEAN country.
Last year, Kia's sister brand, Hyundai, established a factory in Indonesia. Hyundai Motor Group's decision to enter both Indonesia and Thailand is due to the immense potential of the automotive markets in these two countries.
Data from the ASEAN Automotive Federation shows that in the first half of this year, Indonesia had the highest car sales, reaching 505,985 units, followed by Thailand (406,131 units) and Malaysia (366,037 units).
The Thai government has pledged to increase the production of electric vehicles (EVs) by 2030 and has taken several supportive measures. As a result, Thailand has become a market that can offer new business opportunities for Kia. Kia will promote its flagship electric models, such as the EV6, in the country.
