Hyundai Mobis is establishing a local subsidiary in Thailand. This is interpreted as an effort to align with Hyundai Motor Company and Kia, which have been focused on pioneering Southeast Asia, and to expand their global market share.
On the 27th, according to a representative from Hyundai Motor Group, Hyundai Mobis established a local subsidiary in Bangkok, Thailand, and completed the business registration. The new subsidiary will focus on the after-service (A/S) related parts business rather than production base. It is reported that as sales of vehicles equipped with Hyundai Mobis products increase in Thailand, they have created an A/S business entity in the region.
The Thailand subsidiary is the third local entity established by Hyundai Mobis in Southeast Asia, following Indonesia and Vietnam. Hyundai Mobis currently produces battery systems and other components at its manufacturing entity in Indonesia and operates an office in Vietnam to carry out various businesses as many domestic corporations have entered that market.
Most A/S parts to be sold in Thailand are exported from home, but it is reported that plans are in place to source some electric vehicle-related components from the Indonesian factory in the future.
Thailand is regarded as one of the countries with a large automobile market size in Southeast Asia, along with Indonesia and Malaysia. In 2023, new car sales amounted to 775,780 units, making it the third highest after Indonesia (1,005,802 units) and Malaysia (799,721 units).
The Thai automobile market has long been dominated by Japanese automakers. However, recently, as the electric vehicle market has rapidly grown, manufacturers from China, including BYD, have actively entered the market. In 2023, while sales of Toyota in the Thai market decreased by 8% compared to the previous year, BYD saw a 4% increase, selling approximately 30,000 units.
Hyundai Motor Group is currently focusing on targeting the Southeast Asian market, including Thailand. There has been a sustained slump in sales in China over the past several years, and with the U.S. administration under Donald Trump potentially imposing high tariffs, the likelihood of decreased sales in that market has increased.
Hyundai's presence in Thailand is still relatively minor. In 2023, the company sold 4,372 units in Thailand, marking its highest sales performance to date, but its market share only accounted for 0.6% of the total.
Last year, Hyundai invested 10 billion baht (approximately 420 million won) to start construction of an electric vehicle assembly plant and battery module plant in Thailand. This factory is expected to begin operations next year, which should increase Hyundai's sales and the demand for components from Hyundai Mobis.
The establishment of a local subsidiary by Hyundai Mobis in Thailand is seen as a move to secure independent growth engines in the global market. Hyundai Mobis is supplying parts such as the motor driven power steering (MDPS) to BYD, which dominates the Thai electric vehicle market, and also counts Volkswagen and Stellantis among its clients.
A representative from the complete vehicle industry stated, "Hyundai Mobis has been focused on expanding its footprint in the global market recently under the leadership of CEO Lee Gyu-seok, who took office in 2023," and noted, "Thailand is likely to become a new growth hub for Mobis as the electric vehicle market is rapidly growing there."