Japanese automakers to invest $4.3 billion in Thailand over 5 years – Thai Government | Reuters

© Reuters. FILE PHOTO: The Toyota EV car is seen at the Bangkok International Motor Show in Bangkok, Thailand March 30, 2022. REUTERS/Soe Zeya Tun/File Photo

Japan’s major automakers will invest 150 billion baht ($4.34 billion) in Thailand over the next five years, a Thai government spokesman said on Monday, supporting the Southeast Asian country’s transition to electric vehicle production.

Toyota Engine (NYSE: ) a Honda (NYSE: ) Motor will invest about 50 billion baht each, while Isuzu Motors will invest 30 billion baht and Mitsubishi Motors ( OTC: ) 20 billion baht, spokesman Chai Wacharoke said, adding that this will include making electric pickup trucks.

Thai Prime Minister Srettha Thavisin concluded her trip to Japan last week.

Southeast Asia’s second-largest economy is the region’s largest producer and exporter of automobiles. Japanese manufacturers have dominated Thailand’s auto sector for decades, but Chinese electric car makers have recently been investing heavily.

The Japanese automakers’ investment will support the government’s policy of transitioning from internal combustion engine vehicles to EVs, Chai said.

Toyota, Honda, Isuzu and Mitsubishi did not immediately respond to requests for comment.

Thailand aims to convert about a third of its annual production of 2.5 million vehicles to electric cars by 2030, and is preparing incentives to support greater investment and conversion to electric car production.

Tax cuts and subsidies introduced by Thailand have already attracted a number of Chinese automakers, including BYD (SZ: ) and Great Wall Motor, which have pledged to invest $1.44 billion in new production facilities in the country.

This month, Srettha showed executives at U.S. EV maker Tesla (NASDAQ: ) industrial zones in Thailand for potential investment.

($1 = 34.5800 baht)