Kia, the premium Korean car manufacturer, is considering making an investment in building an electric vehicle factory in Thailand to benefit from the fast-growing EV market, according to Kia Sales (Thailand).
If its parent firm Kia Corporation, which is part of Hyundai Motor, agrees with the idea of building the EV assembly facility in Thailand, which would become the second Asean member state to host a Kia car plant following Malaysia.
"We will continue to invest in EV manufacturing because we want to be a key player in EV technology development," said Jun Oh Lee, president of Kia Sales (Thailand).
Kia Corporation is in talks with the Board of Investment on EV incentives under the EV3.5 scheme, which aims to support the growth of the EV industry in Thailand.
EV3.5, which will propel industry growth between 2024 and 2027, includes subsidies, reduced import duties for fully assembled cars and an excise tax cut.
Kia announced last year it plans to build an EV factory in Thailand, with annual production capacity of 250,000 units, according to media reports.
Mr Jun declined to elaborate on the details regarding the new investment, saying only that the parent company would make an announcement.
The company will open 26-30 service centres this year, up from 19 at present, to serve local customers, said Jean-David Christian Harel, vice-president for product and marketing at Kia Sales (Thailand).
Between 2024 and 2026, Kia Sales (Thailand) plans to launch various new car models in Thailand, especially those in the sport utility vehicle category.
The company positions itself as a premium car seller, aiming to gain a 20% market share in the premium car segment this year.
It is aware of banks' stricter criteria to grant car loans but is not worried about the situation because its customers are financially healthy.
The rapid growth of Thailand's EV market and stronger competition among EV makers caused Kia to market cars in Thailand in order to boost sales.