Japan automakers to invest $4.3 bln in Thailand over 5 years -Thai govt (updated)

Isuzu Motors

25/12/2023 08:00

(Adds comment from govt spokesperson, background in paragraphs
4-10)
       BANGKOK, Dec 25 (Reuters) - Major Japanese auto
manufacturers will invest 150 billion baht ($4.34 billion) in
Thailand over the next five years, a Thai government
spokesperson said on Monday, supporting the Southeast Asian
country's transition to making electric vehicles.
    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.
    Southeast Asia's second-largest economy is the largest car
producer and exporter in the region. Japanese manufacturers have
dominated the Thai auto sector for decades, but Chinese EV
makers have recently been making large investments.
    The investment by the Japanese automakers will support the
government's policy of transitioning from combustion engine
vehicles to EVs, Chai said.
    Toyota, Honda, Isuzu and Mitsubishi did not respond
immediately to requests for comment.
    Thailand is aiming to convert about a third of its annual
production of 2.5 million vehicles into EVs by 2030 and is
preparing incentives to encourage more investment and conversion
into EV manufacturing.
        Tax cuts and subsidies rolled out by Thailand have
already drawn a raft of Chinese carmakers, including BYD
 002594.SZ  and Great Wall Motor  601633.SS , which have
committed to investing $1.44 billion in new production
facilities in the country. 
        Srettha this month showed executives from U.S. EV maker
Tesla industrial estates in Thailand for potential investment. 
($1 = 34.5800 baht)

 (Reporting by Chayut Setboonsarng; Editing by Edmund Klamann
and Jamie Freed)
 ((chayut.setboonsarng@tr.com; +66854849033;))