Hyundai Glovis Enters Thai Logistics Market... Accelerating Southeast Asia Expansion

Establishment of Thai Corporation 'Hyundai Glovis Logistics Thailand'
"150 Electric Trucks to be Deployed in Thailand Within the Year... Delivering Goods to 7-Eleven Stores"
"Thailand-Vietnam-Indonesia Triangular Alliance Completed... Enhanced Logistics Competitiveness in Europe, Americas, and Northeast Asia"

Kosak Chairasmisak, Senior Vice Chairman of CP Group (from left), Tarin Taniyawan, President of AllNow, Kim Jung-hoon, President of Hyundai Glovis, and Park Man-su, Executive Director of Hyundai Glovis Future Business Promotion Center, are taking a commemorative photo at the business agreement ceremony between Hyundai Glovis and Thailand CP Group held recently at the Four Seasons Hotel in Bangkok, Thailand.
Photo by Hyundai Glovis

[Asia Economy Reporter Yoo Hyun-seok] Hyundai Glovis has established a corporation in Thailand and is set to actively target the local market and the Association of Southeast Asian Nations (ASEAN). Starting with an eco-friendly logistics business using electric vehicles in partnership with Thailand's top conglomerate CP Group, the company plans to build supply chains for the automotive industry with its corporate partners.

With the addition of Thailand to the logistics hubs previously established in Vietnam and Indonesia, completing a 'triangular formation,' it is expected that Hyundai Glovis will strengthen its logistics competitiveness not only in Southeast Asia but also in Europe, the Americas, and Northeast Asia.

Hyundai Glovis announced on the 19th that it recently held a corporate opening ceremony in Bangkok, Thailand, attended by Hyundai Glovis CEO Kim Jung-hoon and Kosak Chairasmisak, Vice Chairman of Thailand's CP Group.

The corporation is named Hyundai Glovis Logistics Thailand. It is a joint venture (JV) with local automotive parts manufacturers and logistics companies. Since foreign investment in the logistics sector in Thailand is limited to less than 50%, establishing a joint venture is necessary for smooth business operations.

Hyundai Glovis plans to pursue ▲partnerships with leading local food and distribution companies ▲building supply chains for the automotive industry ▲third-party logistics (3PL) services for global manufacturers.

Hyundai Glovis Logistics Thailand will promote projects to improve the management efficiency of logistics across CP Group's affiliates, the largest business group in Thailand. CP Group recorded approximately 72 trillion KRW in sales last year across 21 countries worldwide through its food business CP Food, distribution company CP All, and telecommunications and media specialist True, among others.

Hyundai Glovis focused on the fact that CP Group leads Thailand's consumer goods industry by operating about 13,000 convenience stores under the '7-Eleven' brand nationwide, as well as the grocery chain 'Makro' and the large-scale mart chain 'Lotus.' Emphasizing CP Group's strong interest in eco-friendly logistics, Hyundai Glovis plans to deploy 150 electric trucks within the year to deliver goods from CP's local logistics centers to 7-Eleven stores located throughout Bangkok.

Additionally, since CP Group requires a large number of new and replacement transport vehicles annually across its logistics operations, Hyundai Glovis plans to gradually increase the number of electric trucks deployed over the next five years. Furthermore, the company aims to participate in the expansion of CP Group's fresh food volumes into neighboring Southeast Asian countries such as Cambodia and Malaysia.

Hyundai Glovis will also strengthen its business with JV partners. First, it will participate in the automotive parts logistics business of Summit, one of the joint venture partners. Summit is a leading automotive parts manufacturer in Thailand. Hyundai Glovis plans to join Summit's global finished vehicle OEM (Original Equipment Manufacturer) sales transportation and warehouse logistics operations. The company is also pursuing a business to transport volumes of global finished vehicle manufacturers imported from Indonesia to Thailand using car carrier trucks, thereby building an automotive logistics supply chain.

Through collaboration with another partner, EAL, Hyundai Glovis will promote 3PL sales targeting global manufacturing companies. 3PL refers to logistics services outsourced to specialized companies. EAL is a prominent local logistics company in Thailand that provides customs clearance, storage, and transportation services to global companies operating in Thailand.

Combining EAL's local logistics operation know-how and network in Thailand with Hyundai Glovis's logistics competitiveness in Europe, the Americas, and Northeast Asia is expected to create significant synergy when advancing logistics businesses between Thailand-Europe and Thailand-Americas. Hyundai Glovis will handle import and export transportation, while EAL will manage processes within Thailand, including import customs clearance, procurement transportation, storage, and sales.

Hyundai Glovis established its first Southeast Asian corporation in Vietnam in 2019. Last year, it also set up a corporation in Indonesia and is actively conducting logistics business locally. A Hyundai Glovis official stated, “We plan to establish a foothold in the Thai logistics market through the successful execution of CP Group's logistics business,” adding, “We will solidify our position as a leading global logistics company by expanding business to surrounding ASEAN countries with Thailand, Vietnam, and Indonesia as the 'triangular formation.'”

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