Hyundai has commenced assembly of the Ioniq 5 in Thailand as part of its efforts to reduce the model's price and expand its presence in the country's electric vehicle market.

The company has launched the locally assembled Ioniq 5 at a price of THB 1.7 million (US$ 51,010), lower than the THB 1.988 million price of the previously imported completely built-up (CBU) model sourced from South Korea. Local production has reduced the vehicle's price by THB 289,000, or approximately 15%.

To support the launch, Hyundai is offering a THB 300,000 discount to the first 400 customers purchasing the locally assembled model, reducing the effective purchase price to THB 1.4 million. This represents total savings of THB 589,000, or approximately 30%, compared with the imported version.

The localisation programme follows investment promotion approval granted by the Thailand Board of Investment (BOI) to Hyundai Mobility Manufacturing Thailand, a subsidiary of South Korea's Hyundai Motor Company. The BOI approved investments worth a combined THB 1 billion (US$ 28 million) for the local assembly of battery electric vehicles and the batteries that power them, with production scheduled to begin in 2026.

Hyundai's project forms part of the second phase of Thailand's strategy to develop a regional electric vehicle production base, known as the EV 3.5 package. The programme is intended to promote investment across the EV ecosystem, including vehicles, batteries, key components and charging infrastructure. Covering the 2024-2027 period, the programme provides incentives to manufacturers and subsidies for consumers purchasing electric vehicles.

According to BOI Secretary General Narit Therdsteerasukdi, Hyundai's investment supports Thailand's role as a manufacturing base and an EV market.

"Hyundai's entry into Thailand's EV sector is a very positive development, confirming the attractiveness of Thailand as both a manufacturing base and an important market," Narit stated.

He further added that Thailand's established automotive supply chain would enable Hyundai to source at least one-third of its required raw materials and components locally, supporting domestic industry development. Operations are being conducted in partnership with Thonburi Automotive Assembly Plant (TAAP), Hyundai's business partner in Thailand. According to previous announcements, Hyundai had planned to partner with TAAP for EV assembly in the country. TAAP already acts as a contract manufacturer for Mercedes-Benz in Thailand and is expected to be responsible for assembly of the Ioniq 5 as well.

The facility will also assemble a corresponding volume of EV batteries alongside vehicle production. Thailand has become the seventh global production site for the Ioniq 5, joining South Korea, the United States, Singapore, Vietnam, Indonesia and India.

Hyundai offers the model in Thailand exclusively in the N Line variant and states that Thailand is the only overseas production location for this specific configuration. The Thailand-specification Ioniq 5 N Line is powered by a rear-mounted permanent magnet synchronous motor producing 168 kW and 350 Nm of torque. Energy is supplied by an 84 kWh nickel manganese cobalt (NMC) battery pack. The electric vehicle can accelerate from 0-100 km/h in 7.5 seconds, reach a top speed of 185 km/h and deliver a WLTP-certified driving range of 530 km.

Charging performance includes support for 10.5 kW AC charging, allowing the battery to be charged from 10% to 100% in approximately 7.35 hours. Using a 350 kW DC fast charger, the battery can be charged from 10% to 80% state of charge in approximately 18 minutes.

The investment comes as Thailand continues to expand its EV industry. Under the government's 30@30 policy, electric vehicles are expected to account for at least 30% of total vehicle production in the country by 2030.

Thailand remains the largest automotive manufacturing hub in Southeast Asia and ranks among the world's 10 largest vehicle-producing nations. To date, 18 manufacturers from China, Japan and Europe have either commenced EV production in Thailand or announced plans to begin production within the next two years.

The BOI has already approved EV supply-chain projects worth more than THB 80 billion. The broader global EV market continues to grow. According to the International Energy Agency's Global EV Outlook 2024, electric vehicle sales increased by around 25% during the first quarter of 2024 compared with the same period a year earlier. Global EV sales are projected to reach approximately 17 million units in 2024, representing more than one in every five vehicles sold worldwide.