25-12-2023 (BANGKOK) Japan’s major automotive companies are poised to invest in the production of electric vehicles (EVs) in Thailand, reinforcing the country’s potential as a significant player in the automotive industry and highlighting the government’s successful investment policies. This collaboration aims to position Thailand as a primary hub for manufacturing EVs in the ASEAN region, with the Thai government prioritizing support for the Thai-Japanese automotive industry.
Prime Minister Srettha Thavisin has expressed the government’s commitment to fostering the transition from gasoline-powered cars to EVs in collaboration with Japanese car manufacturers. The goal is to attract increased investments in Thailand and establish a strong foothold in the EV market. Government spokesman Chai Watcharong stated that this initiative would strengthen Thailand’s position as a leading producer of EVs in the ASEAN region.
During the ASEAN-Japan meeting held from December 14 to 18, the Prime Minister engaged in discussions with seven major Japanese automotive companies. Following these discussions, the Thailand Board of Investment (BOI) announced that within the next five years, four Japanese automotive giants would expand their EV production in Thailand, with a combined investment of approximately 150 billion baht. The companies leading this expansion are Toyota with a 50 billion baht investment, Honda with 50 billion baht, Isuzu with 30 billion baht, and Mitsubishi with 20 billion baht. Some companies even plan to commence electric pickup production within the next 2-3 years.
All seven Japanese automotive companies confirmed their intention to make Thailand their primary manufacturing base in the region. This aligns with the Thai government’s commitment to supporting these automotive giants in their transition to EVs, reducing carbon emissions, and promoting EV and hydrogen technologies. Additionally, the companies proposed a battery-swapping model for commercial vehicles. To facilitate the investment environment, Thailand plans to grant short-term visa exemptions for Japanese investors visiting the country for business purposes.
Srettha emphasized the pivotal role of Japanese automotive companies in developing and promoting Thailand as a leader in the EV industry within the ASEAN region. He reiterated Thailand’s readiness to support and collaborate with Japanese automotive manufacturers seeking further expansion in the country, thereby creating economic opportunities for both nations in the rapidly growing EV industry.
