In a significant boost to Thailand’s electric vehicle (EV) aspirations, major Japanese automakers are slated to invest 150 billion baht ($4.34 billion) over the next five years, according to a spokesperson from the Thai government. This substantial investment is poised to expedite Thailand’s transition to electric vehicles, with automotive giants Toyota Motor and Honda Motor committing approximately 50 billion baht each. Additionally, Isuzu Motors and Mitsubishi Motors are set to contribute 30 billion baht and 20 billion baht, respectively, signaling a collective commitment to the production of electric pickup trucks.
Thai government spokesperson Chai Wacharoke disclosed that this investment aligns with the country’s policy to shift from traditional combustion engine vehicles to a more sustainable EV landscape. This development follows Thailand’s Prime Minister Srettha Thavisin’s recent visit to Japan, solidifying the strategic partnership between the two nations in the automotive sector.
While Toyota, Honda, Isuzu, and Mitsubishi did not provide official comments on the matter, the investment is anticipated to reinforce Thailand’s position as the largest car producer and exporter in Southeast Asia.
As part of its commitment to embracing the green revolution, Thailand aims to convert about one-third of its annual vehicle production—totaling 2.5 million vehicles—into electric vehicles by 2030. To incentivize further investment and facilitate the transition to EV manufacturing, Thailand is introducing tax cuts and subsidies, making the country an attractive destination for automotive investment. This move not only supports the government’s environmental goals but also comes at a crucial time when Chinese EV manufacturers are increasingly penetrating the Thai auto sector.
The influx of Japanese investment aligns with 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.
Thailand’s proactive governmental stance, coupled with enticing incentives, has positioned the country as a key battleground for international automakers competing for a share in the burgeoning EV market. In a recent development, Prime Minister Srettha showcased industrial estates to executives from U.S. EV maker Tesla, underscoring the nation’s openness to further international collaborations and investments in the electric vehicle sector.
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