Hyundai Mobis Confirms Thailand Expansion! Accelerating Global Strategy with 3rd Southeast Asian Hub

Hyundai Mobis to Establish Thai Subsidiary, Intensifying Southeast Asia Market Strategy

Hyundai Mobis is set to establish a local subsidiary in Thailand, aiming to target the Southeast Asian market. This marks its third Southeast Asian hub, following Indonesia and Vietnam, with key objectives being strengthening its after-sales service business and expanding its electric vehicle (EV) parts supply chain. Hyundai Mobis's entry is drawing attention as Chinese EV manufacturers like BYD rapidly grow in the Thai market, traditionally dominated by Japanese brands.

Background of Hyundai Mobis's Thai Subsidiary Establishment

Hyundai Mobis recently established a specialized after-sales service subsidiary in Bangkok, Thailand. This is not a production base but a hub focused on A/S parts supply and ensuring service quality. The need for a local subsidiary arose as sales of finished cars equipped with Hyundai Mobis products increased in Thailand.

Southeast Asia Expansion Status

Country	Type of Entity	Main Business
Indonesia	Production Subsidiary	Battery System Manufacturing
Vietnam	Office	Various Business Operations
Thailand	A/S Subsidiary	Parts Supply and Service

Changes in the Thai Automotive Market

The Thai automotive market is undergoing interesting changes. In 2024, total car sales in Thailand decreased by 26.2% year-on-year to 572,675 units. This is the lowest level in 15 years.

However, the electric vehicle (EV) market is showing a completely different picture. In 2024, the number of registered pure EVs in Thailand reached 70,137 units, achieving a market penetration rate of 14.0%. What's particularly noteworthy is that 7 out of the top 10 brands are Chinese.

2024 Thai EV Market Ranking

Rank	Brand	Sales Volume	Market Share
1st	BYD	27,005 units	38.5%
2nd	MG	9,081 units	12.9%
6th	Tesla	4,121 units	5.9%

BYD has been the top EV seller in Thailand for 18 consecutive months since January 2023. One out of every three EVs sold in Thailand is a BYD product, dominating the market.

Hyundai Motor Group's Thailand Expansion Strategy

In August last year, Hyundai Motor invested 1 billion baht (approximately 42 billion KRW) to begin construction of an EV assembly plant and a battery module plant in Thailand. This plant is scheduled to start operations in early 2026.

In April 2023, Hyundai Motor established its own subsidiary called 'Hyundai Mobility Thailand'. This is the first subsidiary directly established by Hyundai Motor in Thailand. Previously, production was carried out using the CKD method through a joint venture called 'HMTH', which had been operating for 17 years since 2006. This joint venture was liquidated, and Hyundai transitioned to an independent subsidiary.

Hyundai Mobis's Global Performance

In 2023, Hyundai Mobis recorded a record high of $9.2 billion (approximately 12 trillion KRW) in overseas orders. This is nearly double the amount from the previous year.

A major achievement was the battery system assembly (BSA) supply contract with Volkswagen. Currently, Hyundai Mobis also has Stellantis, Mercedes-Benz, BMW, GM, and BYD as clients.

Market Outlook and Opportunities

Thailand is the third-largest automotive market in Southeast Asia. As of 2023, new car sales reached 775,780 units, ranking third after Indonesia (1,005,802 units) and Malaysia (799,721 units).

Currently, Hyundai Motor's market share in Thailand is only 0.6%, but opportunities are expanding with the rapid growth of the EV market. For Hyundai Mobis, which supplies parts like MDPS (Motor Driven Power Steering) to BYD, the growth of Chinese brands could actually be an opportunity.

Parts Supply Strategy

Hyundai Mobis plans to primarily export A/S parts for sale in Thailand from South Korea. However, it is reported that some EV-related parts will be sourced from its Indonesian plant in the future.

This appears to be a strategy to enhance cost competitiveness by optimizing the supply chain within the Southeast Asian region.

Conclusion

The establishment of Hyundai Mobis's Thai subsidiary is an important step demonstrating its commitment to independent growth in the Southeast Asian market. It will be interesting to see how Hyundai Mobis carves out its own niche in the Thai market, where Chinese EV brands are rapidly growing amidst the traditional dominance of Japanese brands.

Currently, Hyundai Mobis is focused on reducing its dependence on Hyundai Motor and Kia and securing independent growth drivers in the global market. We look forward to seeing if the establishment of the Thai subsidiary can serve as a successful stepping stone for this strategy.

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