Thailand, the ASEAN production hub for pick-up trucks and small cars, has been for some time now trying to position itself as a hub for green car production. Now, Bangkok Post reports that the government has pledged further investment privileges and full support for finance, R&D, human resources and infrastructure in the effort to promote Thailand as a hub for hybrid, electric and hydrogen vehicles.
Thai prime minister Prayut Chan-o-cha met with country CEOs from Toyota, Isuzu, Nissan and Honda earlier this week. The four Japanese car brands accounted for 58% of Thailand’s automotive shipments last year, totalling 1.25 million units worth US$17.58 billion, led by trucks and eco-cars. Including equipment and parts, total export value amounted to US$25.6 billion in 2015.
According to Chutima Bunyapraphasara, the permanent secretary for commerce, the PM ordered the industry ministry to team up with the finance, commerce, labour, natural resources and environment and transport ministries to map out details of supporting plans covering investment privileges, tax incentives and other benefits to continue drawing in investment from the auto sector. Related industries have also been ordered to jointly prepare the country’s automotive development roadmap for the next five and 20 years.
A sign of not standing still, Gen Prayut confirmed that Thailand will continue to support eco-car production, but urged players to apply higher technology and alternative energy, including biodiesel and ethanol. The government also pledged additional privileges for pick-up trucks that use biodiesel, in a push to support B20. The PM also encouraged the four Japanese CEOs to invest in setting up a battery production facilities.
Responding to this, the Japanese carmakers promised to continue investing in Thailand, and for future vehicles too if the government offers clear-cut policies, Chutima said. They also asked about Thailand’s current and future strategies to support car exports, particularly through more free trade agreements (FTAs).
It was previously reported that carmakers based in Thailand are keen for the country to join the Trans-Pacific Partnership (TPP) agreement, a US-led 12-nation trade pact that Malaysia is a part of.
“At present, Thailand has yet to lose much competitiveness against four ASEAN countries (Brunei, Malaysia, Singapore and Vietnam) that joined the TPP. The pact will deliver a huge impact to Thailand once they develop their own automotive industries to support TPP members or Indonesia decides to join the trade pact,” said Pitak Pruittisarikorn, CEO of Honda Automobile Thailand, who added that only 70% of Thailand’s total production capacity of 2.9 million vehicles a year is currently being utilised.
While Thailand is not currently in the TPP, Chutima said the government has been proceeding with talks under the framework of existing FTA pacts, and new ones with the likes of Pakistan, Turkey, Russia and some countries in the Middle East and Africa.
All three major car producing countries in ASEAN – Thailand, Indonesia and Malaysia – have initiatives for eco-friendly vehicles, but ours is considered the most advanced for energy-efficient vehicles (EEVs), Frost & Sullivan VP for Asia-Pacific Vivek Vaidya told a seminar hosted by the Electric Vehicle Association of Thailand late last year.
One good thing about the Malaysian package is that manufacturers can localise EEV production into a variety of car segments including hybrid and electric with small production volumes, it was noted.
Vaidya suggested that the Thai government push for hybrid and electric production by providing investment incentives, and not focus on production volume in the initial stage. Waiving import duties on CBU imported units and subsidising prices would be effective in the short term, he said.
Malaysia, ahead of the curve?
Looking to sell your car? Sell it with Carro.
Dontrest your laurels and sit back.
While Thailand govt is planning for the future & fine tuning their policies which best fits its investors.
back home we are having nasi lemak , curry puff and teh tarik. Lepak dulu bro.
Investors are begging to set up plants in Msia.
Nak duit just ask our best fren to borrow
a few $$ bil. Tak habis can return.
Terbaikkkk !! Syukurlah John !!
Danny, you mean US$25 billion is from just Toyota, Isuzu, Nissan and Honda alone or from the whole car industry? I suspect you mean US$25 billion just from the above 4 players.
That is Rm110 billion lost in just one year alone that is 2015. And that is just 4 players.
How much has Malaysia lost if we include other players (assuming US$25 billion is not just 4 players but whole industry)
How much has Malaysia lost the past 30 years? If one year we can lose RM110 billion (2015), if we times this with say 20 years, have we lost trillions?
Also, the jobs? We lost hundreds of thousands of jobs to Thailand.
Is this all worth it just to save Proton and the AP cronies?
US$25.6 billion was the value of total automotive industry exports from Thailand in 2015
I was about to say the same thing… Thailand is doing something about this. Malaysia – your move next!
Wtf is eco green car? The bunch of idiots dont care. Whatever it is. There must be AP.
Customisable EEV incentive yet failed to attract more investment as projected.
The only thing we hear is the big talk big hope big direction by MAI. Bunch of jokers.
Even how advance Malaysia in green car program, the Japanese will not invest here la…..that is already a part of their Yakuza Imperial strategy, infront of our MITI, MIDA, MOF they will nod their head and say yeah yeah yeah, but investment will still go to Thailand and Indonesia…..
So just cut the crap and be like Myanmar, u agree with my style u enter, u dont agree u get lost…..after all, we are not that advance as people may think…..full of Bangladudes, Burmese, Vietnamese, Indons trading in every street of KL…..
Where is Madani Sahari? NAP follow mainly MAI policy. MAI has been guiding the NAP for years now. See where we are heading? Soon, even the existing car companies CKDing in Malaysia will close shop and open in Thailand.
That is how bad Malaysia is heading.
No fear, we have proton, proton feeds lots supplier, supplier feeds alots of employee, employee feeds the govern, when proton got problem, govern feeds proton, its a economy cycle. Dun need others interfere
Sucks that Malaysia isn’t putting in serious effort to pull this business into the country.
Just give the car companies tax free operations for 50 years, remove corporate profit tax, import / export duties and GST for the 50 year period and I guess it may be a good deal for these companies to come in and it’ll be good for the country in the long term.
Tired to comment or give another 2 cents to government official, masuk telinga kanan keluar telinga kiri. Yang masuk duit haram, duit seleweng dan duit “derma” tapi tak keluar2 plak…good for Thailand’s people as one day they will enjoy the fruits of these open door policy.