Thailand Collaboration with Toyota for EV Industry Development
Prime Minister Srettha Thavisin revealed a collaborative effort between Thailand and Toyota Motor Corp aimed at propelling the country’s electric vehicle (EV) industry. Discussions with Toyota executives unveiled the automaker’s acknowledgment of Thailand’s prowess in auto manufacturing, specifically in the production of pick-up trucks and eco-cars.
Toyota’s strategic plan involves trialing its inaugural EV pick-up truck in Thailand, marking a significant move to bolster EV sales. This initiative responds to the burgeoning competition from Chinese rivals, intensifying the landscape of electric mobility within the country.
For decades, Japanese giants such as Toyota and Honda Motor Co (7267.T) have dominated Thailand auto hub, leveraging it as a pivotal export base. Thailand’s ambition to convert one-third of its annual vehicle production—currently at 2.5 million—into EVs by 2030 aligns with this historical dominance.
Government Initiatives: Tax Incentives and Consumer Subsidy Shift
In line with the EV transformation agenda, the Thai government introduced a three-year tax incentive for automakers investing in automation and robotics. This initiative follows the recent reduction of consumer subsidies for EV purchases, signaling a shift in support mechanisms for the industry’s advancement.
Thailand has emerged as a significant player in the Southeast Asian EV sales arena, accounting for about half of all sales in the second quarter. Notably, Chinese brands like BYD (002594.SZ) and Great Wall Motor (601633.SS) have been leading in sales within the region, highlighting Thailand growing influence in this market segment.
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