South Korean automaker Kia Corp is currently engaged in discussions with Thailand to establish an electric vehicle (EV) facility in the Southeast Asian nation, according to two undisclosed government sources on Tuesday.
This move aligns with Thailand's aspirations to become a leading EV manufacturer in the region.
The ongoing talks primarily revolve around the incentives Kia is seeking from the Thai government, as revealed by the anonymous sources who are not authorized to disclose this information. One source emphasized that Kia has presented a substantial proposal, and the ball is now in their court.
As of now, neither Kia nor Thailand's Board of Investment (BOI) has responded to Reuters' inquiries regarding this matter.
However, in January, BOI had previously stated that Kia was contemplating an investment in Thailand, contradicting earlier reports that suggested the Korean company had decided against it.
Thailand, recognized as Southeast Asia's largest car producer and exporter, has actively implemented incentives, tax breaks, and other initiatives to position itself as a key player in regional EV production.
Concurrently, Thailand is also in discussions with Tesla (NASDAQ:TSLA) about a potential new facility that could encompass both EV and battery production.
As part of its government plan, Thailand aims to convert approximately 30% of its annual vehicle production (2.5 million vehicles) into EVs by 2030.
Notably, the Thai vehicle market, traditionally dominated by Japanese automakers such as Toyota (NYSE:TM) Motors and Honda Motor Co (NYSE:HMC), has attracted over $1.44 billion in investment commitments from Chinese EV manufacturers for the establishment of production facilities.
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