A Thai government spokeswoman claimed that major Japanese automakers will invest 150 billion baht ($4.34 billion) in Thailand over the next five years, assisting the Southeast Asian country's shift to electric automobiles.

 

Toyota Motor (7203.T) and Honda Motor (7267.T) will invest about 50 billion baht each, while Isuzu Motors (7202.T) will invest 30 billion baht and Mitsubishi Motors (7211.T) 20 billion baht, spokesperson Chai Wacharoke said, adding this would include the production of electric pickup trucks. Thailand's Prime Minister Srettha Thavisin concluded a trip to Japan last week, as per thehansindia.

 

Southeast Asia's second-biggest economy is the region's leading automotive producer and exporter. For decades, Japanese automakers controlled the Thai vehicle business, but Chinese EV manufacturers have recently made significant investments.

 

According to Chai, the Japanese automakers' investment will help the government's policy of shifting from combustion engine vehicles to EVs. Thailand intends to convert around one-third of its annual car output of 2.5 million vehicles to EVs by 2030 and is planning incentives to attract additional investment and conversion into EV manufacture.

 

Thailand's tax concessions and subsidies have already attracted a slew of Chinese automakers, notably BYD (002594.SZ) and Great Wall Motor (601633.SS), which have pledged to investing $1.44 billion in new manufacturing facilities in the country.

 

Srettha last month showed officials from Tesla, a U.S. electric vehicle manufacturer, industrial estates in Thailand for potential investment.