Automakers urged on Thai hub for ‘cars of the future’

According to Chutima Bunyapraphasara, permanent secretary of the Commerce Ministry, the chief executive officers of Toyota, Isuzu, Nissan and Honda assured Prayut yesterday of their continued investment in Thailand. 

They also said they planned to continue investing in the cars of future – hybrids and vehicles powered by electricity or hydrogen – in this country.

“These carmakers asked for the government [to initiate] a policy for promotion of investment in cars of the future. According to the prime minister, the government … needs to promote this industry and push Thailand as the hub for production of the cars of the future,” Chutima said.

Prayut said the government was ready to provide support for carmakers in terms of investment promotion, financial assistance, research and development, and human-resources development for the new industry, as well as infrastructure development, she said. 

The Industry Ministry has been assigned to hold discussions with other relevant ministries to formulate details and working plans to promote this issue and attract carmakers to invest in Thailand on expectation of having the measures come into effect by next year. A five-year and a 20-year development plan will also be worked out.

Involved ministries will include Finance, Commerce, Labour, Transport, and Natural Resources and Environment.

The government has a policy to continue its support for eco-cars and new production technologies should be used, while more new models will require alternative energy including biodiesel and ethanol. These developments will have impacts on car prices and key crops like oil palm and sugar cane.

The four auto companies’ CEOs took the view that Thailand, as a manufacturing base, had solid support from the domestic market, and if the government had a certain policy, they were ready to make the needed investments, Chutima said. Once they have done so, if there is sufficient production capacity, it will be utilised to produce cars for export as well.

Affecting such imports, Chutima noted that Thailand had a number of free-trade agreements and had been negotiating new ones.

“Thailand has been going ahead with FTA negotiations with our [trade] partners to open up markets. We have also started negotiations with new countries including Pakistan, Turkey, countries in the Middle East and Africa, Russia and Eurasia. We are also studying ways to take part in negotiations for the Trans-Pacific Partnership,” she said. 

Prayut also wants to expedite solutions to investment problems and obstacles from Thailand’s rules and regulations for all companies equitably, she said.

Toyota, Isuzu, Nissan and Honda together account for 58 per cent of Thailand’s auto exports. Last year, the country exported 1.25 million vehicles worth US$25.61 billion (Bt907.2 billion), led by pickup trucks. 

The main markets for eco-cars are Asean, Australia, the Middle East, New Zealand and Mexico.