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Japanese Automakers Pour Billions into Thailand’s Electric Vehicle Future

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Thailand is about to witness some electrifying times as major Japanese automakers are pumping THB150 billion ($4.34 billion) into the country’s electric vehicle (EV) industry over the next five years. This hefty investment aligns with Thailand’s strategic pivot towards EV production, and it’s shaping up to be a game-changing move.

Toyota Motor Corp TM and Honda Motor Co Ltd HMC are each committing around THB50 billion to make this dream a reality. Not to be outdone, Isuzu Motors ISUZY and Mitsubishi Motors Corp MMTOF are also putting their money where their mouth is, with contributions of THB30 billion and THB20 billion, respectively.

The plan is to include electric pickup trucks in the investment, as reported by Reuters. Thailand, known as the largest car producer and exporter in Southeast Asia, has long been under the hood of Japanese automakers – but what happens when a new player is revving its engines?

Recent entries into the regional marketplace by Chinese EV makers like BYD Company BYDDY and Great Wall Motor Company seem to signal a new race for EV dominance.

The Thai government aims to charge up its annual vehicle production of 2.5 million, with a target of converting a third of these into EVs by 2030. To put some extra turbo in the tank, Thailand is rolling out a red carpet of incentives, including tax cuts and subsidies, to sculpt an EV-friendly environment that’ll charge up more investments into electric vehicle manufacturing.

And in a move that might spark some electricity in the air, Thailand’s Prime Minister Srettha Thavisin is keeping his fingers crossed for a jolt of investment from the U.S. EV giant Tesla Inc TSLA.

Price Action: TM shares closed lower by 1.29% at $178.53 on Friday. Do you think this is the calm before the electric storm?

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Looks like the future is truly here with AI-assisted news! 

Also Read: Honda Recalls Millions: Free Fuel Pump Replacement For 2.6M Vehicles In Safety Move

Photo via Wikimedia Commons

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