Toyota Invests RM7.2 Billion To Boost Thailand Hybrid Car Production

As Thailand’s National Electric Vehicle Policy Committee (EV Board) approves a new tax structure to support hybrid vehicle production, Toyota Motor Corporation has announced plans to invest THB 55 billion (MYR 7.2 billion) in the country to expand its hybrid car production efforts.

Through which, the Japanese automaking giant seeks to modernise its manufacturing lines to accommodate both internal combustion engines and battery-powered electric motors for hybrid vehicles, says Thailand's Industry Minister Akanat Promphan. This effort is also poised to  improve labour skills, ease technological transfer, and generate jobs.

The announcement followed a meeting between Toyota Chairman Akio Toyoda and Thailand’s Prime Minister Paetongtarn Shinawatra, with the latter reaffirming her administration’s commitment to support the automotive industry too by aligning policies with industry needs and promoting sustainable growth in the electric vehicle (EV) sector.

During the meeting, Akio Toyoda praised Thailand’s role as a key manufacturing hub. He highlighted that  the Thai-made automotive parts are on par with those produced in Japan. Toyota, with over six decades of operations in Thailand, continues to see the country as pivotal to its global production strategy.

Toyota has been criticised for its sluggish EV adoption and instead placing emphasis on hybrids, which has turned out to be profitable. In the recent fiscal year, the carmaker sold a record 10.3 million vehicles worldwide, and 3.5 million of which consists of hybrid models, marking a 31% year-over-year increase too.

Furthermore, Toyota has reduced its EV manufacturing goals. Initially, it had targeted to produce 1.5 million EV units by 2026, but has since revised it to 1 million units. The company's dedication to "practical, transitional technologies" that meet the needs of the market today is demonstrated by this change.