Kia eyes Thailand for new EV plant

Kia Corp., a South Korean car manufacturer, is reportedly in discussions with Thailand to establish an electric vehicle (EV) facility in the country, Reuters reported on Tuesday, according to unnamed government sources.

The talks are centered around the incentives that Kia is seeking from the Thai government.

Earlier in January, the Board of Investment (BOI) said that Kia was contemplating an investment in Thailand, contradicting media reports that the company had decided against it.

Thailand, being the largest car producer and exporter in Southeast Asia, has introduced various incentives and tax breaks to establish itself as a leading player in the regional EV production market.

The country is also in separate discussions with Tesla for a new facility that could include EV and battery production.

As part of a government plan, Thailand aims to transform approximately 30 per cent of its annual vehicle production of 2.5 million units into EVs by 2030.

The Thai vehicle market, which has been dominated by Japanese automakers like Toyota Motors and Honda Motor Co., has attracted over $1.44 billion in investment commitments from Chinese EV manufacturers to construct production facilities.