Japanese car makers risk lagging behind in EV production, warns Thai PM

Picture courtesy of Fast Auto Show

Srettha Thavisin, the Prime Minister and Finance Minister, issued a cautionary note to Japanese car manufacturers, warning that they risk falling behind in the industry unless they accelerate the production of electric vehicles (EVs). This comes as Chinese competitors continue to gain a substantial market share in Southeast Asia.

The business mogul turned political figure voiced his concerns during an interview with the Japanese press yesterday. His comments come just before his planned visit to Tokyo for a summit meeting scheduled for Sunday, between Japan and the Association of Southeast Asian Nations (ASEAN).

“You have been lagging in terms of EV manufacturing or developing.”

The 61 year old Thai PM insisted that Japan’s automobile sector needs to keep pace with the worldwide shift towards electrification, reported Bangkok Post.

“We have had productive discussions with Toyota and Honda in terms of giving them tax incentives.”

Over the past 50 years, Japanese corporations, including Toyota Motor Corp and Honda Motor Co, have been the most significant foreign investors in Thailand. The Bangkok-born prime minister expressed his keenness to support the continued engagement of these Japanese firms.

In line with the summit marking 50 years of cordial relations and collaboration between Japan and the Association of Southeast Asian Nations, PM Srettha plans to meet with executives of Japanese companies, including car manufacturers. He voiced his optimism for “positive conclusions” to be reached during these interactions.

In related news, the Office of Industrial Economics (OIE) anticipates a significant surge in Thailand’s smart electronics, and IT sectors in the forthcoming year.

The trigger for this expected growth is the commencement of production by global electric vehicle (EV) manufacturers within the country.

The assembly of EVs is heavily reliant on electronics and IT products, hence the increased demand in these sectors, stated Warawan Chitaroon, the director-general of OIE. The production of EVs by manufacturers is projected to kickstart in the initial quarter of 2024. To read more click HERE

Business NewsTransport News

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

Related Articles