Posted on 28 Mar 2023
South Korean automaker Hyundai has established a subsidiary in Thailand in order to expand its market share in Southeast Asia.
Jaehoon Chang, co-ceo of Hyundai Motor, says: "While expanding the existing vehicle business, the company will take electric vehicles as a forerunner and turn the ASEAN market into a future core market."
Hyundai and Kia are both expanding in the ASEAN market. They aim to provide more professional and highly efficient services.
Their largest competitors are Japanese automakers, Kallanish notes. During 2022, the top three best-selling vehicle brands in Thailand were all Japanese brands - Toyota, Honda and Mitsubishi, according to focus2move.
A considerable part of the reason Japanese cars have been popular in Thailand is that local production in Thailand has been realised relatively early. Local people in Thailand are also able to enjoy tax breaks when choosing to buy Japanese cars. In addition, Japanese auto brands have relatively more service outlets, and the cars are regarded as more economical and reliable.
According to Yonhap News Agency, after the start of the operation of Hyundai and Kia's factory in Indonesia, sales increased about 600% from 2021 to 2022. In order to better adapt to local demand, Hyundai is considering building new production equipment there in order to strengthen its competitiveness.
Source:Kallanish
