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Hyundai Glovis breaks into the Thai market
Hyundai Glovis, a South Korean logistics company that is part of the Hyundai Kia Automotive Group, revealed late last week that it had established an office overseas as part of its business strategy to expand in the Southeast Asian market.
For this project, Hyundai Glovis set up its business in Bangkok and officially entered the Thai market. According to The Korea Herald, the company launched the Hyundai Glovis Logistics Thailand, which is a joint venture with local logistics and auto parts companies.
The company said this JV would be responsible for building synergy with its existing logistics sites in Indonesia and Vietnam. Hyundai Glovis further said that the foreign investment ratio for the JV is limited to 50%, which is why it requires coordination with local firms.
The Korean conglomerate also shared that the high logistics demand brought about by the sales network and factories of international manufacturing companies of electronic devices and auto parts was what prompted it to expand its business in Thailand.
Under the agreement with the CP Group, the largest conglomerate in Thailand, Hyundai Glovis Logistics Thailand will carry and move products to 7-Eleven stores around Bangkok. The deliveries will start this year using 150 electric trucks.
From its deliveries to 7-Eleven stores for CP Group, Hyundai Glovis Logistics Thailand will then increase the number of its electric delivery vehicles to serve more companies. The JV company is also looking to eventually do business with Thailand's neighboring countries, such as Malaysia and Cambodia.
The Korea Times reported that Korea's Hyundai Glovis and CP Group also inked a memorandum of understanding (MoU) to develop different business models based on green logistics services using hydrogen and electric vehicles and other services that will use robots, drones, and micro-fulfillment centers. Finally, Hyundai Glovis is also planning to join the auto parts transportation business of Summit Auto Body Industry, which is one of its local partners for the JV in Thailand.
"We plan to settle in the Thailand logistics market with a successful logistics business with CP group," an official of Hyundai Glovis stated. "We will strengthen our position as a global leading logistics company by expanding from Thailand, Vietnam, and Indonesia to other neighboring ASEAN countries."