Posted on 02 Jan 2024
Japanese automakers are planning to invest around THB 150 billion ($4.4 billion) in Thailand over the next five years, targeting electric vehicle expansion, according to Thai newspaper The Nation.
Citing the Thailand Board of Investment (BOI), the report said the planned investment consists of THB 50 billion from Toyota, THB 50 billion from Honda, THB 30 billion from Isuzu and THB 20 billion from Mitsubishi. Some companies plan to start the production of electric pick-up trucks in the next two or three years, though it’s unclear which companies.
Following an official Thai visit to Japan in December, the Thai government claims all seven Japanese carmakers have confirmed their intent to use Thailand as their primary manufacturing base in the ASEAN region, aligned with the Thai government’s policies to support these automotive giants in transitioning towards EVs, reducing carbon emissions, and promoting EV and hydrogen technologies. These companies are also said to have proposed a battery-swapping model for commercial vehicles.
During the visit, BOI’s secretary general Narit Theodsatheerasak presented a new policy to Japanese investors focusing on modern automobiles and bio-circular-green economy (BCG). In addition to incentives such as subsidies and tax breaks, the Thai government will also facilitate the investment environment by granting short-term visa exemptions for Japanese investors visiting the country for business purposes.
According to BOI, Japan has the highest number of foreign investors investing in Thailand, with over 4,000 Japanese projects approved in the past 10 years, Kallanish notes.
The Thai-Japanese collaboration aims to propel Thailand into becoming a primary hub for manufacturing EVs in the ASEAN region. The country is planning to convert over 30% of its annual car production (2.5 million units) into EVs by 2030. It announced earlier an incentive package to attract more investment into EVs
Thailand is aiming to convert about a third of its annual production of 2.5 million vehicles into EVs by 2030. It is working on incentives to encourage more investment and help manufacturers electrify their production lines towards “modern vehicle production.”
The carmakers are yet to publicly confirm the investment plans.
Source:Kallanish
