Japan’s Influence on the Thai Automotive Industry: A Game-Changing 150 Billion Baht Boost

The Thai automotive industry is on the brink of a major transformation as four prominent Japanese car manufacturers are preparing to invest a substantial 150 billion baht in the production of electric vehicles (EVs) within the country. This significant collaboration not only underscores Thailand’s growing importance in the global automotive market but also highlights the government’s successful efforts in attracting investment opportunities.

Prime Minister Srettha Thavisin has affirmed the country’s dedication to supporting the Thai-Japanese automotive industry, establishing strong partnerships with Japanese car manufacturers to facilitate the transition from traditional gasoline-powered vehicles to state-of-the-art electric ones. This strategic alliance is expected to attract significant investments to Thailand, positioning the country as a leading manufacturer of EVs in the ASEAN region.

During the ASEAN-Japan meeting from December 14 to 18, the prime minister engaged in high-level discussions with seven major Japanese automotive companies. As a result, the Thailand Board of Investment (BOI) revealed that over the next five years, four Japanese automotive giants – Toyota, Honda, Isuzu, and Mitsubishi – are preparing to expand EV production in Thailand with an impressive investment of approximately 150 billion baht. These companies are also on track to commence electric pickup production within the next 2 to 3 years, showcasing their ambitious plans for the Thai automotive market.

In a significant move, all seven Japanese automotive companies have committed to making Thailand their primary manufacturing base in the region. This alliance with the Thai government’s pro-EV policies aims to not only reduce carbon emissions but also drive advancements in EV and hydrogen technologies, alongside introducing a revolutionary battery-swapping model for commercial vehicles. The Thai government is also set to streamline the investment process by providing short-term visa exemptions for Japanese investors visiting the country for business purposes.

The Prime Minister, at 61 years old, has emphasized the integral role of Japanese automotive companies in propelling Thailand as a dominant force in the ASEAN electric vehicles industry. He has expressed Thailand’s readiness to collaborate with Japanese automotive manufacturers seeking to expand their presence in the country, opening up substantial economic opportunities in the electric vehicles sector for both nations.

This bold move by Japanese automotive giants is poised to revolutionize the Thai automotive landscape, paving the way for a new era of environmentally friendly transportation and driving significant economic growth in the country. With such momentous investments and partnerships, Thailand is solidifying its position as a key player in the global automotive market, particularly in the burgeoning electric vehicles industry.