A Thai government spokesperson said on Monday that major Japanese carmakers will invest 150 billion baht ($4.34 billion) in Thailand over the next five years to support Thailand’s transition to electric vehicle manufacturing in Southeast Asia.
Toyota and Honda Motors will invest about 50 billion baht each, Isuzu Motors 30 billion baht and Mitsubishi Motors 20 billion, said spokesperson Chai Wacharoke, which will also include production of electric pickup trucks. added.
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Thai Prime Minister Suretta Thabisin completed her visit to Japan last week.
Southeast Asia’s second-largest economy is the region’s largest automobile producer and exporter. Thailand’s car sector has been dominated by Japanese manufacturers for decades, but recently Chinese EV makers have been making major investments.
Investments by Japanese automakers will support the government’s policy of transitioning from internal combustion engine vehicles to EVs, Chai said.
Toyota, Honda, Isuzu and Mitsubishi did not respond to requests for comment.
Thailand aims to convert about one-third of its annual production of 2.5 million vehicles to EVs by 2030, and is preparing further investment and incentives to encourage the switch to EV manufacturing.
Thailand’s tax breaks and subsidies have already brought in a number of Chinese automakers, including BYD and Great Wall Motors, which have pledged to invest $1.44 billion in new production facilities in the country.
Earlier this month, Mr. Suletta presented potential investments in Thailand to executives from U.S. electric car maker Tesla Industrial Park.