Beyond CKD in Malaysia; Kia now mulling new EV assembly plant in Thailand
Arvind · Mar 6, 2024 03:15 PM
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Following its official entry into the Thailand market, Kia is now reportedly considering establishing its first EV assembly plant in the Kingdom, joining the growing list of manufacturers vying for a competitive edge in this region's most vibrant EV market.
The Bangkok Post reports that parent company, Kia Corporation, has already agreed to the idea in principle.
Jun Oh Lee, president of Kia Sales (Thailand), recently stated, "We will continue to invest in EV manufacturing because we want to be a key player in EV technology development."
Lee did not elaborate on the specifics of the plant's location or investment value but mentioned that the parent company would make an announcement in due course.
However, separate reports from September last year suggest that the plant would have an annual production capacity of 250,000 units and was slated to come online in 2024.
Kia has big plans in Thailand. In January, it outlined its long-term business objectives as part of the global "Plan S-5" strategy for 2024-2028, which includes:
Achieving a 5% market share in the passenger car market.
Kia Thailand also recently launched its first EV model, the Kia EV9 SUV, a flagship 6-seater EV SUV available in two variants with prices starting at THB 3,499,000 (RM 462k).
If realised, the new plant will become the second such facility for Kia in the ASEAN region, after its local assembly plant in Kulim, Kedah, which currently produces the Kia Carnival MPV.
Crucial to Kia's expansion in Thailand, is the latest phase of EV subsidy packages granted by the Government, known as EV 3.5, which comes into effect for 4 years, between 2024 and 2027.
Under the EV 3.5 package, the Thai-government will provide purchase-subsidies for electric cars, pick-up trucks, and motorcycles based on vehicle type and battery capacities.
These include subsidies ranging between THB 50,000 (~RM 6.6k) and THB 100,000 (~RM 13.2k) for passengers cars under THB 2 million (~RM 265k) and THB 100,000 (~RM 13.2k) subsidies for locally-assembled (CKD) EV pick-up truck purchases. These incentives also include reductions in import duties (of up to 40% in 2024 and 2025) and excise tax (from 8% to 2%).
However, all companies must offset with EV production domestically at a 1:2 CBU/CKD ratio by 2026 and 1:3 by 2027 to qualify.
Arvind can't remember a time when he didn't wheel around a HotWheels car. This love evolved into an interest in Tamiya and RC cars and finally the real deal 1:1 scale stuff. Passion finally lead to formal training in Mechanical Engineering. Instead of the bigger picture, he obsesses with the final drive ratio and spring rates of cars and spends the weekends wondering why a Perodua Myvi is so fast.
