During a visit to Tokyo for the upcoming summit between Japan and ASEAN members, Thai Prime Minister Srettha Thavisin emphasized the need for Japanese companies in Thailand, particularly in the automotive sector, to make swift decisions in response to the increasing market share of Chinese companies. In an exclusive interview with Kyodo, Srettha highlighted the challenges Japanese automakers face in Thailand, urging them to adapt to evolving market dynamics quickly.
During his visit, Srettha engaged with executives from major Japanese automakers, including Honda Motor Co, Toyota Motor Corp, Nissan Motor Co, Isuzu Motors Ltd, and Suzuki Motor Corp. The discussions centered on potential tax incentives to encourage these companies to enhance their production of electric vehicles (EVs) in Thailand.
The Thai Prime Minister acknowledged the global competitiveness of Japanese automakers but stressed the importance of making prompt decisions, especially in light of the growing dominance of Chinese carmakers in the Thai EV market. Recent research from a local bank indicated that Chinese companies now hold nearly 80 percent of Thailand’s market share for EVs.
Srettha conveyed a sense of urgency, noting that while Japanese companies are not alone in the global market, they must adapt quickly to the changing landscape. He encouraged Japanese automakers, with a longstanding presence in Thailand spanning over 60 years, to contribute significantly to the Thai economy by continuing to view the country as a base for automobile exports.
Expressing his hope that Thailand will remain a key hub for automobile exports, Srettha outlined ongoing efforts, including free trade negotiations with the European Union and Britain. These negotiations are critical as Thailand exports Japanese cars manufactured within the country to these markets. The Thai Prime Minister is particularly focused on boosting the country’s economy, which is in the recovery process following the impact of the COVID-19 pandemic.
During his visit, Srettha is set to hold talks with Japanese Prime Minister Fumio Kishida on the sidelines of the special summit commemorating the 50th anniversary of friendship and cooperation between the Association of Southeast Asian Nations (ASEAN) and Japan. This visit marks Srettha Thavisin’s first official visit to Japan since assuming office on September 5.
The discussions and potential tax incentives aim to bolster the competitiveness of Japanese automakers in Thailand, fostering a resilient industry amid intensifying global competition, especially from Chinese counterparts in the burgeoning electric vehicle market.
