In a boost to Thailand’s electric vehicle (EV) ambitions, major Japanese automakers are set to invest 150 billion baht ($4.34 billion) over the next five years, according to a Thai government spokesperson.
The investment is poised to accelerate Thailand’s transition to electric vehicles, with industry giants Toyota Motor and Honda Motor committing approximately 50 billion baht each. Additionally, Isuzu Motors and Mitsubishi Motors will contribute 30 billion baht and 20 billion baht, respectively, signalling a collective commitment to the production of electric pickup trucks.
Thai government spokesperson Chai Wacharoke revealed that the investment aligns with the country’s policy to shift from traditional combustion engine vehicles to a more sustainable EV landscape. This move comes on the heels of Thailand’s Prime Minister Srettha Thavisin’s recent trip to Japan, solidifying the strategic partnership between the two nations in the automotive sector.
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While Japanese automakers Toyota, Honda, Isuzu, and Mitsubishi did not comment on the matter, the investment is expected to bolster Thailand’s status as the largest car producer and exporter in Southeast Asia.
The Southeast Asian nation, eager to embrace the green revolution, aims to convert approximately one-third of its annual vehicle production, totalling 2.5 million vehicles, into electric vehicles by 2030.
To encourage further investment and facilitate the shift to EV manufacturing, Thailand is rolling out tax cuts and subsidies. This move not only supports the government’s environmental goals but also positions Thailand as an attractive destination for automotive investment. The investment by Japanese automakers comes at a crucial juncture when Chinese EV manufacturers are increasingly making substantial inroads into the Thai auto sector.
The influx of Japanese investment complements Thailand’s broader strategy of attracting global players in the electric vehicle space. Beyond Japanese automakers, Chinese companies such as BYD and Great Wall Motor have committed to investing $1.44 billion in new production facilities in Thailand.
The government’s proactive stance, coupled with the allure of incentives, has turned Thailand into a key battleground for international automakers vying for a stake in the growing EV market.
This month, Thailand’s Prime Minister Srettha showcased industrial estates to executives from U.S. EV maker Tesla, indicating the nation’s openness to further international collaborations and investments in the electric vehicle sector.
(With inputs from Reuters)
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