Toyota, Honda, Isuzu, and Mitsubishi unveil RM 20 billion investment in Thailand; EV pick-ups part of the plan
Sanjay Ā· Dec 26, 2023 10:18 AM
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Japanese automotive giants are set to channel a total of THB 150 billion baht (~RM 20 billion) into Thailand over the next five years, bolstering the nation's shift towards electric vehicle (EV) production, according to a government spokesperson on Monday, reports Reuters.
In this substantial investment commitment, Toyota and Honda are poised to contribute approximately THB 50 billion each (~RM 6.7 billion), Isuzu will invest THB 30 billion (~RM 4 billion), and Mitsubishi Motors will allocate THB 20 billion (~RM 2.7 billion).
The funding will encompass various initiatives, including the manufacturing of electric pickup trucks, disclosed spokesperson Chai Wacharoke.
Prime Minister Srettha Thavisin also recently concluded a visit to Japan, highlighting the strong economic ties between the two nations. Thailand, as the largest car producer and exporter in Southeast Asia, has long been a focal point for Japanese automakers.
However, the landscape is evolving as Chinese electric vehicle manufacturers are making significant inroads through substantial investments.
The spokesperson emphasised that the investments from Toyota, Honda, Isuzu, and Mitsubishi align with the Thai government's strategic agenda to transition from traditional combustion engine vehicles to electric ones.
Current Isuzu D-Max pictured, but Thailand aims to produce the the next-gen D-Max EV too
Thailand has ambitions to convert approximately one-third of its annual vehicle production (currently standing at 2.5 million vehicles) into electric vehicles by 2030, and is actively implementing measures to attract investments in the EV sector.
The government is rolling out incentives, including tax cuts and subsidies, to encourage further investment and facilitate the transformation of manufacturing facilities for electric vehicles. Already, this approach has drawn notable commitments from Chinese car manufacturers such as BYD and Great Wall Motor, which have pledged $1.44 billion (~RM 6.6 billion) for new production facilities in the country.
In terms of products, Honda has started production of the e:N1 EV SUV in the country recently. Meanwhile, an EV Isuzu D-Max is confirmed for 2025, also to be built in Thailand for domestic and export markets.
With humble beginnings collecting diecast models and spending hours virtually tuning dream cars on the computer, his love of cars has delightfully transformed into a career. Sanjay enjoys how the same passion for cars transcends boundaries and brings people together.
