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| Japanese Automotive Giant Chooses Electric Car Investment in Thailand rather than Indonesia |
Four well-known automotive companies from Japan have reportedly chosen to invest in electric cars in Thailand, they are Toyota, Honda, Isuzu and Mitsubishi.
In fact, the four brands that currently have factories in Indonesia will disburse funds of up to USD4.34 billion or around 150 billion Baht (equivalent to IDR 67 trillion) in the land of the White Elephant over the next five years.
This information, which is quite important for Thailand and surprising for Indonesia, was conveyed directly by the Thai Government Spokesperson, Chari Wacharoke, on Monday 25 December 2023. As reported by Reuters.
As for the total investment disbursed of USD4.34 billion, if detailed, Toyota and Honda each spent 50 billion baht, while Isuzu 30 billion baht and Mitsubishi 20 billion baht. It was also stated that this investment was made for the production of electric pickup cars.
The Thai government spokesperson said that the intentions of the four automotive manufacturers from the country of Sakura cannot be separated from their desire to support the Southeast Asian country's transition to switching to electric vehicles.
Thai Government Policy Facilitates Investment in Electric Cars
For some of the world's most famous automotive enthusiasts, Thailand is considered a strategic location to produce a number of vehicle products that are marketed domestically and for export.
In fact, according to Reuters, Thailand is the country with the second largest economy in Southeast Asia, as well as being the largest car producer and exporter base in ASEAN.
How could it not be, Japanese manufacturers have dominated Thailand's automotive sector for decades, including a number of Chinese companies which are now flocking to invest heavily there.
If you think that Indonesia is the production location for a number of Japanese brand cars, that's true.
However, Thailand did not want to give in, because it turned out that the investment disbursed by Japanese car manufacturers was no less large.
Chai even said that a number of Japanese automotive manufacturers would support the government's policy of switching from combustion engine vehicles to electric vehicles.
Although currently Toyota, Honda, Isuzu and Mitsubishi do not want to comment, it is known that Thailand wants to shift around a third of its annual production, namely 2.5 million, only to electric vehicles by 2030.
This is why the Thai government is preparing a policy of providing incentives to automotive manufacturers, to encourage more investment and conversion into electric vehicle manufacturing.
The attractive and tempting policy provided by the Thai government in the form of tax cuts and subsidies is proven by the entry of two Chinese automotive giants, namely Built Your Dream (BYD) and Great Wall Motor (GWM) to establish business roots in Thailand by disbursing funds of up to US$1.44 billion, just for new production facilities.
I wonder if the Indonesian government could also provide a tempting policy for automotive manufacturers to invest here.
