(CTN News) – In a significant move that underscores Thailand’s commitment to embracing electric vehicles (EVs), major Japanese auto manufacturers are set to inject a staggering 150 billion baht (US$4.34 billion) into the Southeast Asian nation over the next five years.
The announcement, made by Thai government spokesperson Chai Wacharoke, revealed that Toyota Motor and Honda Motor would each contribute around 50 billion baht, with Isuzu Motors investing 30 billion baht, and Mitsubishi Motors allocating 20 billion baht.
Notably, these investments will encompass the production of electric pickup trucks, marking a pivotal step in Thailand’s automotive evolution.
Thailand, home to Southeast Asia’s second-largest economy, has long held the title of the region’s largest car producer and exporter. Japanese automakers have played a dominant role in shaping the country’s automotive landscape for decades.
However, as the global automotive industry pivots towards electric mobility, Thailand is witnessing an influx of investments not only from traditional Japanese players but also from emerging Chinese electric vehicle manufacturers.
The decision by Toyota, Honda, Isuzu, and Mitsubishi to channel substantial investments into Thailand aligns seamlessly with the government’s strategic vision of transitioning from conventional combustion engine vehicles to environmentally friendly EVs.
Chai Wacharoke emphasized that the influx of funds from these Japanese giants would provide crucial support for the government’s pro-EV policies.
Thailand’s Prime Minister Srettha Thavisin recently concluded a diplomatic visit to Japan, during which these monumental investment commitments were secured.
The move solidifies the enduring economic partnership between Thailand and Japan, a relationship that has historically been marked by collaboration in various industries.
Japanese-Thai’s Bold EV Vision: Converting One-Third of Vehicle Production by 2030
Thailand’s ambitious target is to convert approximately one-third of its annual production of 2.5 million vehicles into electric vehicles by 2030.
To incentivize more investments and facilitate the transition to EV manufacturing, the Thai government has rolled out a comprehensive package of tax cuts and subsidies.
These incentives have already attracted significant attention from Chinese automakers, with companies such as BYD and Great Wall Motor pledging substantial investments totaling US$1.44 billion in new production facilities in the country.
The automotive landscape in Thailand is poised for a transformative shift, with the government actively courting global players in the electric vehicle market.
In a notable development, Prime Minister Srettha showcased industrial estates in Thailand to executives from the United States-based EV giant Tesla earlier this month, signaling the country’s openness to collaboration with industry leaders from around the world.
As Thailand positions itself as a hub for electric vehicle production in Southeast Asia, the substantial investments from Japanese automotive powerhouses represent a vote of confidence in the nation’s capabilities and potential.
The collaboration between Thai authorities and these industry leaders is expected to not only drive the growth of the EV market in the country but also contribute significantly to the broader regional and global transition towards sustainable transportation.