Hyundai Glovis Partners with Thailand's Top Conglomerate to Enter Local Logistics Market

Thailand GDP 10%: CP Group Operates 7-Eleven Delivery Services

[Asia Economy Reporter Yoo Je-hoon] Hyundai Glovis is entering the local logistics market by partnering with Charoen Pokphand Group (CP Group), the largest conglomerate in Thailand. Hyundai Glovis plans to accelerate its pursuit of the eco-friendly logistics market in the ASEAN (Association of Southeast Asian Nations) region through this entry.

On the 17th, Hyundai Glovis announced that on the 16th, it signed a Memorandum of Understanding (MOU) for establishing a strategic collaboration to enhance customer value with All Now, the logistics subsidiary of CP All, the distribution affiliate of CP Group.

Considering the COVID-19 situation, the agreement was signed remotely using an online video system. Attendees included Kim Jung-hoon, CEO of Hyundai Glovis, and Kosak Chairasmisak, Chairman of the CP All Executive Committee.

CP Group is Thailand’s largest conglomerate with annual sales of 74 trillion KRW across 21 countries worldwide, accounting for about 10% of Thailand’s Gross Domestic Product (GDP). Its subsidiaries include CP Food, which operates in the food business; CP All, a distribution company running the convenience store chain 7-Eleven; and True Group, specializing in telecommunications and media. Notably, CP Group has operated approximately 12,000 7-Eleven stores nationwide in Thailand since 1989 through CP All, holding a 65% market share in the convenience store sector.

Under this agreement, Hyundai Glovis will undertake delivery logistics services transporting goods from CP All’s logistics centers to frontline 7-Eleven stores. Detailed aspects such as the business start date and operational plans will be finalized later.

Hyundai Glovis plans to differentiate itself in this business by deploying electric trucks. The company has been highly evaluated for its ability to secure vehicles, a core element of the electric truck business, through its group affiliates, and for already conducting business using electric trucks.

Accordingly, Hyundai Glovis intends to launch a pilot project for electric trucks within this year and plans to deploy them alongside conventional trucks starting next year. According to the company, this will be the first case of electric trucks being applied in the Thai logistics market.

Building on this collaboration, Hyundai Glovis plans to expand its connections with CP Group. It aims to broaden the scope of cooperation across CP Group affiliates and to jointly pursue business expansion into neighboring countries such as Cambodia.

Hyundai Glovis expects this project to further accelerate its penetration into the ASEAN market. The ASEAN market is a promising region with a population of 650 million, ranking third globally, and a GDP of 2.9 trillion USD, ranking sixth worldwide.

A Hyundai Glovis official stated, "We plan to use this project as an opportunity to demonstrate our global business competitiveness," adding, "We will rapidly expand our market influence, enter neighboring ASEAN countries, and solidify our position as a global logistics company."

This content was produced with the assistance of AI translation services.