Thailand works to retain Japan auto giants with new offer of deals
Industry minister says the discussions, so far, have been positive with the car makers committing investments worth 120 billion baht next year
The Industry Ministry has been encouraging six Japanese automakers to maintain their production bases in Thailand in a bid to boost the auto industry’s growth in the coming year.
Industry Minister Akanat Promphan confirmed on Thursday that discussions with the automakers have progressed positively, with an investment commitment of 120 billion baht.
Akanat said he has pledged to offer tax incentives and other benefits to support manufacturers of both internal combustion engine vehicles and electric vehicles. Additionally, the ministry will promote the use of locally sourced components to sustain suppliers and protect the livelihoods of Thailand’s 445,000 automotive workers.
Expressing confidence in market recovery next year, Akanat said: “The Industry Ministry is committed to restoring confidence in the Thai automotive sector amid current challenges, including the potential relocation of production bases by Japanese automakers.
According to the Federation of Thai Industries, Thailand produced 1.24 million cars in the first 10 months of this year, marking a 19.25% decrease compared to the same period last year.
