In a significant move, major Japanese automakers have pledged to invest 150 billion baht ($4.34 billion) in Thailand over the next five years, according to a statement by a Thai government spokesperson on Monday. The substantial investment aims to bolster Thailand’s transition towards electric vehicles (EVs), marking a crucial step for Southeast Asia’s automotive industry.
The investments include approximately 50 billion baht each from Toyota Motor and Honda Motor, with Isuzu Motors committing 30 billion baht and Mitsubishi Motors investing 20 billion baht. The infusion of funds will enhance the production capabilities of these automakers and will specifically include the manufacturing of electric pickup trucks.
Thailand, boasting Southeast Asia’s second-largest economy, holds the distinction of being the largest car producer and exporter in the region. While Japanese automakers have historically dominated the Thai auto sector, recent years have witnessed significant investments from Chinese EV manufacturers.
The Japanese automakers’ investment aligns with the Thai government’s strategic policy to shift from traditional combustion engine vehicles to electric vehicles. Thailand’s Prime Minister, Srettha Thavisin, recently concluded a trip to Japan, where these investment commitments were secured.
Despite the automakers—Toyota, Honda, Isuzu, and Mitsubishi—not immediately respond to requests for comments, the investment is expected to be crucial in supporting Thailand’s ambitious goal of converting approximately one-third of its annual production of 2.5 million vehicles into electric vehicles by 2030. The Thai government is actively rolling out incentives, such as tax cuts and subsidies, to encourage further investment and facilitate the transition to electric vehicle manufacturing.
This move came when Chinese carmakers, including BYD and Great Wall Motor, had already invested $1.44 billion in new production facilities in Thailand. Moreover, Thailand’s Prime Minister, Srettha, has actively engaged with executives from U.S. EV giant Tesla, showcasing potential industrial estates to attract Tesla’s investment.
The Japanese automakers’ commitment is poised to contribute significantly to Thailand’s electric vehicle ecosystem, fostering economic growth and technological advancement and supporting the global shift toward sustainable transportation.
