Japanese automakers interested in setting up EV plants in Thailand
Four major Japanese automotive companies are set to invest in manufacturing electric vehicles in Thailand, reinforcing Thailand’s potential as a significant automotive industry producer and highlighting the government’s success in supporting investment policies.
Prime Minister Srettha Thavisin has indicated the government will prioritise supporting the Thai-Japanese automotive industry, collaborating with Japanese car manufacturers to facilitate the transition from gasoline-powered cars to electric vehicles. This collaboration aims to encourage increased investments in Thailand and propel the country into becoming a primary hub for manufacturing electric vehicles in the ASEAN region, according to government spokesman Chai Watcharong,
During the ASEAN-Japan meeting from December 14-18 of this year, the Prime Minister engaged in discussions with seven major Japanese automotive companies. The Thailand Board of Investment (BOI) subsequently indicated that within five years, four Japanese automotive companies would be ready to expand production of EVs in Thailand, with a total investment of approximately 150 billion baht. The BOI named these companies as Toyota with 50 billion baht, Honda with 50 billion, Isuzu with 30 billion, and Mitsubishi with 20 billion. Some companies plan to commence electric pickup production within the next 2-3 years.
All seven of the Japanese automotive companies confirmed their intent to use Thailand as their primary manufacturing base in the region, aligned with the Thai government's policies to support these automotive giants in transitioning towards electric vehicles, reducing carbon emissions, and promoting EV and hydrogen technologies. Moreover, the companies proposed a battery-swapping model for commercial vehicles. Thailand also plans to facilitate the investment environment by granting short-term visa exemptions for Japanese investors visiting the country for business purposes.
Srettha reiterated the importance of Japanese automotive companies in developing and promoting Thailand as a leader in the electric vehicles industry within the ASEAN region, noting that Thailand is ready to support and collaborate with Japanese automotive manufacturers looking to expand further in the country, fostering economic opportunities for both nations in the electric vehicles industry.
