Japan Automakers Make Big Investment In Thailand Over Five Years

Leading Japanese automakers will support Thailand's transition to producing electric vehicles by investing 150 billion baht over the next five years, a spokesperson for the Thai government announced on Monday.

According to spokesman Chai Wacharoke, Toyota Motor, Honda Motor, Isuzu Motors, and Mitsubishi Motors will each invest roughly 50 billion baht, while Mitsubishi Motors will invest 20 billion baht. It was added that this investment would go toward the creation of electric pickup trucks.

The biggest manufacturer and exporter of automobiles in the region is the second-biggest economy in Southeast Asia. For many years, Chinese electric vehicle (EV) manufacturers have been making significant investments in Thailand, although Japanese manufacturers have long held the majority of the market, Reuters reported.

According to Chai, the government's policy of switching from combustion engine vehicles to electric vehicles will be supported by the investment made by the Japanese automakers.

By 2030, Thailand wants to convert roughly one-third of its 2.5 million annual car production to electric vehicles (EVs). To this end, the country is putting together incentives to promote increased investment in and conversion to EV manufacturing.

Thailand's tax breaks and subsidies have already attracted a number of Chinese automakers, such as Great Wall Motor and BYD, who have pledged to invest US$1.44 billion in new production facilities in the nation.