4 Japanese Automakers to Invest $4.34 Billion for EV Production in Thailand

In addition to several Chinese manufacturers of electric vehicles, four Japanese automakers have now declared their intentions to produce EVs in Thailand, demonstrating the success of Thailand’s efforts to expand its EV industry.

This was revealed by Chai Watcharong a spokesperson for the country’s Prime Minister’s office. In an official statement, Chai said that the Prime Minister of Thailand, Settha Thavisin had held discussions with 7 automakers in Japan during the Commemorative Summit for the 50th Year of ASEAN-Japan Friendship and Cooperation in Tokyo from December 14th to 18th, 2023.

From these discussions, Thailand’s Board of Investment (BOI) said 4 Japanese automakers have pledged to expand EV production in the country. These include Toyota, which will invest 50 billion baht, Honda with 50 billion baht, Isuzu with 30 billion baht, and Mitsubishi with 20 billion baht. It added that EV production will also cover pick-up trucks in the next two to three years. The total investment of 150 billion baht (approx $4.34 billion) will be made in the course of the next 5 years.

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Furthermore, Chai stated that seven Japanese automakers have committed to making Thailand their primary production base in the ASEAN region. The country has already established a goal of producing 750,000 EVS out of a total of 2.5 million vehicles per year by 2030, and these investments will help it accomplish that goal. Chai said:

“The prime minister emphasized that automobile manufacturers from Japan play an important role in developing and promoting the electric vehicle industry in Thailand to become a leader in electric vehicle production in the ASEAN region. Thailand is, therefore, ready to support and cooperate with Japanese car manufacturers who want to expand their investment further in Thailand to enhance economic opportunities in the electric vehicle industry of both countries as well as navigate through this critical transition period to success and mutual benefits for both countries.”

Thailand has already nabbed a $285m Changan EV investment as the Chinese automaker has designated Thailand as its export base, SAIC (the parent of MG Motor) has already opened up its first battery production plant in Thailand while a number of Chinese automakers are gearing up to ramp up their EV offerings in the Thai market, which will act as a production hub for export to right-hand drive markets. Meanwhile, Honda has also recently kickstarted the production of its e:N1 electric crossover in Thailand.

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