Hyundai is evaluating the export of Thailand-built battery electric vehicles (BEVs) to Australia, with shipments potentially beginning in the second half or fourth quarter of 2026, subject to regulatory approvals and commercial considerations.

Thailand facility positioned as a potential export hub

Hyundai's production operations in the country are managed by Hyundai Mobility Manufacturing Thailand Company, a joint venture with contract manufacturer Thonburi Group, which also has a long-standing distribution relationship with Mercedes-Benz.

Located in Samut Prakan province, the facility assembles the Ioniq 5 electric SUV and includes both vehicle and battery assembly operations. Hyundai invested approximately AUD 42.5 million (US$ 30 million) in the project, which has an initial annual production capacity of 5,000 units.

The locally produced Ioniq 5 currently serves the domestic market, replacing imports from South Korea. Hyundai Mobility Thailand Managing Director Wallop Chalermvongsavej told local media that the company is evaluating models that comply with Australia's New Vehicle Efficiency Standard (NVES) and other import requirements. He said Hyundai intends to export the locally built Ioniq 5 to Australia but must first secure the necessary approvals from Australian authorities.

Hyundai Australia remains cautious

While reports from Thailand indicate exports could begin later in 2026, Hyundai Motor Company Australia (HMCA) has not formally confirmed the programme. A Hyundai Australia spokesperson said the company is reviewing sourcing opportunities across the Asia-Pacific region but has not finalised plans to import the Ioniq 5 from the facility.

"We are currently reviewing the viability of sourcing vehicles from Hyundai factories across the Asia-Pacific region, but at this time there are no confirmed plans to import Ioniq 5 from Thailand," the spokesperson said.

HMCA General Manager of Corporate Communications Bill Thomas also said sourcing vehicles from the facility remains under evaluation.

"We're always looking at other plants to secure volume and flexibility for the Australian market, we are looking at Thailand and Vietnam, but it is not yet confirmed that we will bring in cars from these factories. If we did, in the case of Thailand, it would be initially in low volumes with the aim of boosting stock for our market," Thomas said.

Thomas further added that Hyundai continues to explore production opportunities beyond its traditional manufacturing bases.

Broader Asia-Pacific sourcing strategy

Hyundai's review of alternative sourcing locations reflects its increasing use of regional manufacturing hubs. Historically, Hyundai Australia has sourced most of its vehicles from South Korea, although models have also come from Czechia, Turkey and India. Earlier this year, the Elexio electric SUV became Hyundai Australia's first China-built model.

Thomas said Hyundai is also evaluating products manufactured through its Chinese joint venture, Beijing Hyundai Motor Company. The company is reportedly considering additional China-built vehicles, including the Ioniq V sedan, which entered production for the Chinese market earlier this year.

"Even though it is a sedan, which buyers don't consider as popular as SUVs, the Ioniq V may be well suited to the Australian market, It is an example of what we are looking at outside our traditional factory suppliers," Thomas said.

Local content supports Thai incentives

The locally produced Ioniq 5 contains 46% locally sourced components, exceeding the minimum 40% local-content requirement under the country's EV3.5 incentive programme. The EV3.5 scheme, which runs from 2024 to 2027, offers tax incentives and subsidies in return for investment in local EV and battery production. It also requires manufacturers to maintain a production-to-import ratio that rises from two locally produced BEVs for every imported BEV during 2024-2025 to three locally produced vehicles for every imported unit by 2027.

Hyundai plans to offset 800 imported vehicles this year to meet these requirements. Under the programme, locally assembled EVs exported from the country count as 1.5 units towards local production obligations, compared with one unit for vehicles sold domestically, providing an additional incentive for exports.

The incentives have contributed to lower domestic pricing for the Ioniq 5 in the market. The imported pre-facelift model was priced at THB 2.4 million (US$ 71,110), while the locally assembled facelifted Ioniq 5 N Line is priced at THB 1.7 million. By comparison, the South Korea-built 2026 Ioniq 5 N Line Premium starts at AUD 83,700 before on-road costs in Australia following an AUD 8,000 price reduction announced in June 2026.

Thailand's growing importance in vehicle exports

Thailand has become an increasingly important vehicle production and export base for Australia. It is currently Australia's third-largest source of new vehicles behind China and Japan, ahead of South Korea, Germany and the United States. Popular Thailand-built vehicles sold in Australia include the Ford Ranger and Ranger Raptor, Toyota HiLux, Isuzu D-Max, Mitsubishi Triton, Ford Everest, Isuzu MU-X, Mazda CX-3 and Honda CR-V.

Other manufacturers are also using the country as an EV export hub. The GWM Ora hatchback was briefly supplied to Australia from Thailand before sourcing reverted to China. Deepal has also indicated plans to manufacture the S05 electric SUV in Thailand for export markets, including Australia, although timing and market details remain unconfirmed.

Hyundai targets growth in Thailand

Hyundai expects local production to support sales growth in Thailand. The company is targeting sales of 2,800 Ioniq 5 units in the country this year. To support this objective, Hyundai plans to expand its sales and service network to 28 outlets nationwide.

Vietnam operations may also support exports

In addition to Thailand, Hyundai is evaluating opportunities arising from its expanding manufacturing operations in Vietnam. According to reports, Hyundai Thanh Cong Vietnam Auto Manufacturing Corporation (HTMV), a joint venture between Hyundai and local conglomerate Thanh Cong Group, recently expanded its manufacturing footprint with a facility in Ninh Binh province.

The plant has an annual production capacity of 100,000 units. Combined with Hyundai's existing Vietnamese facilities, total production capacity now stands at approximately 180,000 vehicles annually, creating potential export opportunities. The Vietnamese operation currently manufactures models including the Santa Fe, Accent and Ioniq 5.

Hyundai entered the Vietnamese market through a joint venture with TC Group in 2009. The company's sales in Vietnam surpassed Toyota's in 2021, and it is understood to currently hold the leading position in the country's automotive market.

As Hyundai expands production capabilities across Thailand, Vietnam and China, it is increasingly evaluating how these regional manufacturing hubs can support vehicle supply and flexibility for markets such as Australia while meeting evolving regulatory requirements and growing demand for electric vehicles.