Japanese EV makers to invest $4.3 billion in Thailand

Four of the major Japanese automotive companies would expand electric vehicle (EV) production lines in Thailand with a staggering investment of $4.3 billion.

The announcement came after the ASEAN-Japan meeting from December 14-18, where Prime Minister, Srettha Thavisin held discussions with seven major Japanese automotive companies.

The Thailand Board of Investment (BOI) shared details about an investment plan of 150 billion baht ($4.3 billion) for the next five years proposed by Japanese automotive companies. The investment mainly aims at EV production in the country.

The investment consists of 50 billion baht by Toyota, 50 billion by Honda, 30 billion by ISUZU, and 20 billion by Mitsubishi. Some car makers even pledge to make electric pickup within the next 2-3 years.

Earlier this month, Stretth said that Tesla executives are also looking around industrial estates in the country for potential investment.

Meanwhile, the ASEAN country is poised to become a big hub of electric vehicle manufacturing among the ASEAN nations. Thus this new investment could pave the way for more EV production.

To achieve more investments, Thailand is offering subsidies for both EV purchases and production. The newly approved “EV3.5” scheme provides subsidies from 50,000 to 100,000 baht per Thailand-made EV to encourage local manufacturing.

There are some new changes in tax breaks for locally produced parts and providing a simplified corporate income tax structure.

(source – Nationthailand)