Caixin News, December 18 - After a recent meeting between Toyota Motor Chairman Akio Toyoda and Thai Prime Minister Paetongtarn Shinawatra, Toyota has committed to investing at least 55 billion Thai Baht (approximately $1.6 billion) over the next five years to upgrade its Thai plant. The investment will focus on transforming the plant into a key production hub for hybrid vehicles.
According to Thai Minister of Industry, Akanat Promphan, the investment will primarily be used to retrofit the Thai factory to support the production of internal combustion engines and electric motors for hybrid vehicles. Akio Toyoda emphasized that the investment would not only increase the plant's production capacity but also create numerous job opportunities and bring long-term benefits in terms of technological advancement and human resources development.
On the Thai government side, Prime Minister Paetongtarn reiterated the government's commitment to aligning its policies with the needs of the automotive industry to balance the interests of manufacturers and consumers. In particular, for hybrid vehicle production, Thailand aims to implement favorable policies to foster sustainable growth in the electric vehicle sector and strengthen its green energy initiatives.
Toyoda also highlighted Toyota's 60-year presence in Thailand, which has become one of the company's most important production hubs globally. He assured that the quality of parts produced in Thailand would meet the same high standards as those made in Japan, ensuring consistency across Toyota's global supply chain.
This investment underscores Toyota's long-term commitment to the Thai market, especially in the hybrid and electric vehicle sectors. In the fiscal year 2024, Toyota achieved a record global sales volume of 10.3 million vehicles, with hybrid vehicle sales reaching 3.5 million, a 31% year-over-year increase. However, Toyota's electric vehicle sales remain relatively low, and the company recently revised its global electric vehicle production target for 2026, reducing it from 1.5 million to around 1 million units.
Toyota's investment and strategic adjustments further demonstrate its approach to balancing environmental goals with market demand while signaling its long-term development plans for Thailand and Southeast Asia.
