US President Donald Trump's plan to impose a 25% tariff on car imports may affect electric vehicle (EV) production plans globally, says Hyundai Mobility Thailand, a subsidiary of South Korea's Hyundai Motor Group.
"Many EV makers may revise their business plans and make more investments in the US," said Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand.
"Chinese EV makers may adjust investment in Thailand, probably expanding production to cover left-hand drive vehicles."
Car manufacturers in Thailand usually produce right-hand drive cars.
Chinese EV manufacturers produce left-hand drive vehicles in China for export to Europe and the US. If the new tariff is enforced by the US, they may need to revise their production plans in Thailand, said Mr Wallop.
Trump said on Feb 19 he intends to impose auto tariffs "in the neighbourhood" of 25% and will provide further details on April 2 when new tariffs are scheduled to take effect, according to media reports.
Hyundai operates car assembly plants in the US and Mexico. Trump's trade policy has raised concerns over the impact on the production facility in Mexico.
In Thailand, Hyundai earlier announced it plans to produce 5,000 battery EVs a year at its factory in Samut Prakan in 2026, but it may need to adjust the volume in future as domestic car sales have sagged.
Mr Wallop expects total car sales in the country to range from 560,000-570,000 vehicles this year as the market is expected to remain stagnant due to difficulties for consumers in accessing auto loans and high interest rates amid a high level of household debt.
The loan rejection rate stood at 60% of total auto loan applications last year, he said.
Thailand's domestic car sales reached the lowest level in 14 years at 572,675 units in 2024, according to the Federation of Thai Industries.
Hyundai saw its car sales in the country fall by 27% year-on-year to 3,800 units last year, lower than its target of 4,100 units.
"In 2025, we expect to sell 4,500 units, thanks to the launch of new car models to serve customers' needs," said Mr Wallop.
The company yesterday launched the New IONIQ 5 N Line, a racing sport-inspired EV, in the hope of attracting interest among motorists.