Japanese Automakers to Inject $4.3 Billion into Thailand’s Economy Over the Next 5 Years, Confirms Thai Government – Times of India

Japanese Automakers to Inject $4.3 Billion into Thailand's Economy Over the Next 5 Years, Confirms Thai Government - Times of India

In a major move, major Japanese automakers are set to send 150 billion baht ($4.34 billion) to Thailand over the next five years, according to a Thai government spokesman. Toyota Motor and Honda Motor will contribute about 50 billion baht individually, while Isuzu Motors and Mitsubishi Motors are to invest 30 billion baht and 20 billion baht, respectively.
During his recent visit to Japan, Thai Prime Minister Stretha Thawisin finalized the talks that paved the way. investment. Japan, which has long dominated Thailand’s automotive sector, is facing a changing landscape with the emergence of significant investment from Chinese electric vehicles (E.V) manufacturers.
The influx of capital from Japanese automakers is in line with Thailand’s strategic plan to transition away from traditional combustion engine vehicles. Electric vehicles, an initiative supported by the government. Notably, Toyota, Honda, Isuzu, and Mitsubishi declined to immediately comment on the development.
Thailand, as Southeast Asia’s second-largest economy and the region’s leading automaker and exporter, is gearing up for an ambitious goal. The country aims to convert about a third of its annual vehicle production, a total of 2.5 million units, to electric vehicles by 2030. To encourage further investment and ease the transition to EV manufacturing, Thailand is offering incentives such as tax breaks.
Already, these concessions have attracted significant attention from Chinese automakers such as BYD and Great Wall Motor, which have pledged to invest $1.44 billion in new production facilities within the country. Notably, Thailand’s Prime Minister Sritha visited industrial estates in the country earlier this month to showcase potential investment opportunities to executives at American electric vehicle maker Tesla.

Toyota Motor,The economy of Thailand,investment,evs,ev,Electric vehicles

Be the first to comment

Leave a Reply

Your email address will not be published.