Thailand wins $4.1b in EV chain investments as SE Asia auto hub pivots to ‘next-gen’ tech

From Ellen Boonstra, Business Acumen’s Asia correspondent >>

SOUTHEAST ASIA’s primary automotive manufacturing hub, Thailand has secured more than US$4.1 billion (about 137 billion baht) in investment pledges across its electric vehicle (EV) supply chain, solidifying its position as global carmakers realign their production networks toward clean energy.

According to newly released data from the Thailand Board of Investment (BOI), the capital injection spans 198 projects, covering the entire ecosystem, including battery electric vehicles (BEVs), hybrid systems, battery manufacturing, critical components, and charging infrastructure. 

The investment surge has come as global automakers diversify supply chains away from geopolitical hotspots and establish regional hubs in Southeast Asia, where the potential markets are large.

Unlike regional competitors focusing solely on pure electric vehicles, Thailand’s policy framework supports a transition across all major propulsion technologies, including Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and BEVs.

“The transition to electric vehicles is both a global challenge and a massive opportunity,”  Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI) and Secretary of the National EV Policy Board, said during a presentation at the International Electric Vehicle Technology Conference (iEVTech) in Bangkok this month.

“We must choose to be builders, not just consumers. By supporting all technologies — hybrid, plug-in hybrid, and battery electric — we allow legacy players and new entrants to invest and grow together, elevating Thai suppliers into the global value chain.”

This strategy is already paying off in the market according to regional analysts. In 2025, electrified vehicles accounted for over 40% of all new vehicle registrations in Thailand, with HEVs leading at 21.8%, closely followed by BEVs at 19.6%.

Broad-based EV manufacturing economy

The $4.1 billion investment pipeline is highly distributed, showing deep integration across the supply chain rather than top-level vehicle assembly alone:

• Battery EVs (BEVs):US$1.18 billion (about 39.5 billion baht) across 18 projects, establishing an annual domestic production capacity of over 370,000 units.
• Hybrids (HEV & PHEV):Combined investments of US$1.18 billion across 14 projects, capitalising on Japanese automakers’ legacy hybrid technologies.
• Batteries and Energy Storage Systems (ESS):US$1 billion (about 33.5 billion baht) across 57 projects, securing localised battery cell and pack manufacturing.
• Critical Components:US$373 million (about 12.5 billion baht) across 49 projects, targeting high-value parts such as drive motors, battery management systems (BMS), and power control units.
• Charging Infrastructure:US$292 million (about 9.8 billion baht) across 42 projects, funding more than 22,900 charging stations nationwide, including more than 10,000 high-speed DC fast chargers.

This regulatory framework has pushed several major global automakers to localise production in Thailand.

Major brands hub through Thailand

Mercedes-Benz Manufacturing pioneered local luxury BEV production in Thailand starting in 2022, followed by a major wave of Chinese EV manufacturers — including BYD, Great Wall Motor, SAIC Motor, and Aion — which established domestic assembly lines in 2024.

The momentum continued into 2025 as Changan Auto and EV Primus launched their respective manufacturing operations, culminating in the 2026 production rollouts by South Korea’s Hyundai Mobility and China’s Omoda and Jaecoo. These manufacturing investments have culminated in the creation of more than 16,000 local jobs.

The BOI has also facilitated joint ventures and matchmaking through 18 ‘Sourcing Day’ events. These sessions have paired more than 800 qualified Thai parts manufacturers with multinational automakers, resulting in over 1,200 business matches.

The BOI has estimated that these sourcing links would generate over $1.79 billion (about 60 billion baht) in domestic procurement value, transitioning traditional tier-1 and tier-2 suppliers into the high-tech EV supply chain.

“Ultimately, we are leveraging 60 years of automotive expertise to position Thailand at the forefront of global mobility,” Mr Narit said. “Our goal is to ensure that local industry and local workforce are the ones driving this next chapter of growth.”

Writer Ellen Boonstra is Business Acumen magazine’s roaming Asia correspondent.

About Thailand’s Office of the Board of Investment
Established in 1966, the Office of the Board of Investment (BOI) has continuously played an essential role for over 60 years in promoting value-adding investment for the country, from both foreign and Thai investors, to enhance national competitiveness and drive towards a new era of sustainable and balanced growth. www.boi.go.th

• Currency conversions are based on the Bank of Thailand’s average selling rate of about US$1 = THB 33.5.

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