BANGKOK (July 3): Thailand has secured investment commitments worth more than US$4.1 billion (RM17.4 billion) across its electric vehicle (EV) ecosystem, reinforcing its ambition to remain Southeast Asia’s leading automotive production base as global manufacturers accelerate the shift towards next-generation mobility.
The latest figures released by the Thailand Board of Investment (BOI) showed that 198 approved projects span the entire EV value chain, covering battery electric vehicles (BEVs), hybrid and plug-in hybrid vehicles (HEVs and PHEVs), battery production, critical automotive components and nationwide charging infrastructure.
The investment momentum comes as multinational automakers continue to diversify manufacturing footprints amid evolving geopolitical risks while expanding production capacity in Southeast Asia.
Rather than focusing exclusively on battery electric vehicles, Thailand has adopted a technology-neutral strategy that supports the development of hybrid, plug-in hybrid and fully electric vehicles, allowing both established manufacturers and new entrants to expand operations within the country.
BOI Secretary General Narit Therdsteerasukdi said the transition towards electric mobility presents both significant challenges and long-term industrial opportunities.
He said Thailand’s policy framework is designed to encourage investment across multiple propulsion technologies, enabling global automakers and domestic suppliers to develop alongside one another while strengthening Thailand’s position within the global automotive supply chain.
The strategy has translated into growing domestic adoption. Electrified vehicles accounted for more than 40% of new vehicle registrations in 2025, with hybrid vehicles representing 21.8% of registrations and battery electric vehicles contributing 19.6%.
Investments Spread Across Entire Supply Chain
The investment pipeline reflects broad-based expansion throughout the EV ecosystem rather than concentrating solely on vehicle assembly.
Battery electric vehicle manufacturing attracted US$1.18 billion across 18 projects, creating annual production capacity exceeding 370,000 units.
Hybrid and plug-in hybrid vehicle projects accounted for a further US$1.18 billion across 14 investments, supported largely by established Japanese automotive manufacturers.
Battery manufacturing and energy storage systems secured approximately US$1.0 billion through 57 projects, while investments in critical components—including electric drive motors, battery management systems and power control units—totalled US$373 million across 49 projects.
Meanwhile, charging infrastructure attracted US$292 million across 42 projects, supporting the rollout of more than 22,900 charging stations, including over 10,000 DC fast chargers nationwide.
Global Automakers Expand Local Manufacturing
Thailand’s investment incentives have encouraged several major automotive groups to establish or expand manufacturing operations in the country.
Luxury automaker Mercedes-Benz began local production of premium battery electric vehicles in 2022, paving the way for a broader influx of Chinese manufacturers including BYD, Great Wall Motor, SAIC Motor and Aion, which established local assembly operations in 2024.
The expansion continued in 2025 with production investments by Changan Auto and EV Primus, followed by manufacturing rollouts in 2026 from Hyundai Mobility and Omoda & Jaecoo.
Collectively, these investments have generated more than 16,000 jobs, according to the BOI.
Local Supply Chain Strengthened
Beyond attracting manufacturers, the BOI has intensified efforts to strengthen Thailand’s domestic supplier network through industry matching programmes.
Since launching its “Sourcing Day” initiative, the agency has organised 18 business matching events, connecting more than 800 Thai component manufacturers with multinational automotive companies and facilitating over 1,200 commercial partnerships.
The BOI estimates the programme will generate more than US$1.79 billion in domestic procurement value while helping local tier-one and tier-two suppliers move into higher-value EV manufacturing.
Narit said Thailand intends to leverage its six decades of automotive manufacturing experience to secure a leading role in the global mobility transition.
“Our objective is to ensure that Thailand’s industries and workforce remain central to the next phase of growth in the global automotive sector,” he said.
