Japan revs up Thai automotive industry: Major automakers inject 150 billion baht boost
In a move set to ignite Thailand‘s automotive industry, four major Japanese car giants are gearing up to pump a staggering 150 billion baht into manufacturing electric vehicles (EVs) in the country.
This collaboration underscores Thailand’s ascent as a powerhouse in the automotive world and spotlights the government’s triumphant push towards an electrifying future.
Four heavyweight Japanese automotive juggernauts are poised to revolutionise Thailand’s automotive landscape by investing in the production of electric vehicles (EVs), heralding a new era for the nation’s automotive industry. This bold move not only reinforces Thailand’s potential as a pivotal player in the global automotive market but also underscores the government’s triumph in championing investment policies.
Prime Minister Srettha Thavisin has declared a steadfast commitment to supporting the Thai-Japanese automotive industry, cementing ties with Japanese car manufacturers to seamlessly transition from conventional gasoline-powered cars to cutting-edge electric vehicles. This strategic alliance aims to attract substantial investments to Thailand, propelling the country into the forefront of EV manufacturing in the ASEAN region, according to government spokesman Chai Watcharong.
Engaging in high-stakes discussions during the ASEAN-Japan meeting from December 14 to 18, the prime minister held talks with seven major Japanese automotive companies. Following these deliberations, the Thailand Board of Investment (BOI) disclosed that, within the next five years, four Japanese automotive titans are prepared to expand EV production in Thailand, committing a colossal investment of around 150 billion baht. The companies leading this charge include Toyota, earmarking 50 billion baht, Honda with 50 billion, Isuzu with 30 billion, and Mitsubishi with a formidable 20 billion. Some of these companies have ambitious plans to kickstart electric pickup production within the next 2 to 3 years.
Environment-friendly policies
In an unprecedented move, all seven Japanese automotive companies have unequivocally pledged to make Thailand their primary manufacturing base in the region. This alignment with the Thai government’s pro-EV policies aims to reduce carbon emissions, foster technological advancements in EV and hydrogen technologies, and even introduce a revolutionary battery-swapping model for commercial vehicles. Adding another layer of appeal, Thailand plans to facilitate the investment environment by granting short-term visa exemptions for Japanese investors visiting the country for business purposes, reported The Nation.
The 61 year old PM emphasised the pivotal role of Japanese automotive companies in developing and propelling Thailand as a leading force in the ASEAN electric vehicles industry. He reiterated Thailand’s readiness to support and collaborate with Japanese automotive manufacturers seeking to expand their footprint in the country, paving the way for substantial economic opportunities in the electric vehicles sector for both nations.
