Kia to establish Thai sales subsidiary
New Kia cars are displayed on the sales lot at San Leandro Kia on May 30, 2023 in San Leandro, California, U.S. AFP-Yonhap
Kia, Korea's second-largest automaker, plans to launch a sales subsidiary in Thailand but has decided to scrap a plan to establish an assembly plant in the country, according to company officials and sources Tuesday.
Kia, part of Hyundai Motor Group, plans to officially launch the Thai subsidiary, which will oversee local sales, marketing and after-sales customer service, on Jan. 31.
The automaker, however, reportedly scrapped its plan to establish a production plant in the country after it failed to reach an agreement with the Thailand Board of Investment regarding incentives from the local government.
Kia had initially pushed for a plan to establish an assembly plant with an annual capacity of 250,000 units in Thailand's eastern province of Rayong.
The Thai government has declared a goal to replace 30 percent of domestically produced vehicles with electric cars by 2030. It has also introduced an electric car purchase subsidy scheme for companies with local production plants. (Yonhap)