Former Prime Minister Thaksin Shinawatra gave a special lecture on the Dinner Talk stage "Chat with Tony: Bull Rally of Thai Capital Market" organized by Khao Hoon Business Newspaper at Dusit Thani Hotel on January 13, 2024. Mr. Thaksin said that the BOI should create a balance to maintain the automotive ecosystem that Japanese and American cars have built. Mr. Thaksin's stance shows the progress of Japanese car manufacturers in terms of important negotiations by sending a number one executive, as a leader in the world's automotive industry, to discuss with the Thai Prime Minister late last year.
"The problem that many people complain about is the EV from China and the ecosystem of the automobile system that is already firmly established by Japanese and American car companies. We have to create a balance with the BOI. We will have to let the BOI talk about how we will balance this. In the end, the ecosystem that we have built in terms of cars will be destroyed. It's a shame because we invested a lot. It has a lot of value. Therefore, we have to balance this because EV is coming but it's not coming. There is a transition. There is a fairly long period. Before the combustion engine changes, it may use different fuels. Therefore, this ecosystem must be preserved. So I would like to say that we must create a balance here so that our automotive industry will remain good, including the issue of car finance, which has a problem today. Banks are starting to not release cars. Car companies are starting to complain that they can't sell their products. It's continuous, including the economy may still be weak because today everyone has to help. At the same time, the government has to accelerate the economy to improve so that banks can release cars. The automotive industry will be good. The houses will be better," said Mr. Thaksin.
Mr. Thaksin's speech was consistent with the discussion of Toyota Japan on Wednesday, December 18, 2024 at 10:00 a.m. at Thai Khu Fah Building, Government House, where Mr. Akio Toyoda, Chairman of the Board of Directors of Toyota Motor Corporation, met with Ms. Paethongtarn Shinawatra, Prime Minister. Both parties discussed ways to promote the automotive industry in Thailand. They agreed to develop policies and measures that are in line with the needs of the car user market and customers in the entrepreneur group, especially the production of hybrid cars. The Prime Minister emphasized that the government is ready to facilitate car manufacturers. And domestic auto parts manufacturers to maintain the automotive industry in Thailand, while the Chairman of the Board of Directors of Toyota is pleased to cooperate with the Thai government to promote the production sector and exports of the automotive industry in Thailand to grow continuously.
Mr. Toyoda said that Toyota has been operating in Thailand for over 60 years and Thailand is an important production base for Toyota for commercial vehicles, including other types of vehicles, which the company is confident in the quality of car assembly parts and production standards in line with Thailand, which Japan has accepted in the same standards as Toyota, Japan.
While the Nikkei Asia newspaper reported that Toyota is lobbying the Thai government to increase the promotion of hybrids after the demand for EVs has slumped, with Japan and China competing to seek opportunities to create advantages in special privileges with Thailand, which is known as the "Detroit of Asia" or the center of automotive in Southeast Asia. Toyota's move is an important time because electric vehicles, which China is the leader in, have begun to slow down.
In this regard, the Japanese automakers have tried many times to point out that Japan has invested a huge amount of money in the Thai automotive industry and that Japan has played an important role in developing the Thai automotive industry for over 40 years, while the Thai government has a policy to promote the production of electric vehicles that only benefits Chinese automakers, while Japanese automakers are at risk, both in terms of production potential and marketing. "Japan has tried to make the Thai government understand that electric vehicles are not the only solution, but there are other technologies that can respond to such policies, but they have not received much attention from the government." However, after the latest discussion between Mr. Akio Toyoda, Chairman of the Board of Directors of Toyota Motor Corporation, and Ms. Paethongtarn Shinawatra, Prime Minister, and the recent speech of Mr. Thaksin as the Prime Minister's father, it has shown that the Thai government is open to policies to promote Japanese manufacturers. It is believed that this attitude will have a significant impact on new energy vehicle manufacturers from China directly because Chinese automakers focus on producing EVs. In the past, most Chinese automakers have relied on government support policies, such as tax cuts and privileges for electric vehicles. If these policies are reduced or changed, Chinese manufacturers may have to bear increased costs. The future of Chinese cars depends on how much the Thai government will reduce the importance of electric vehicles from China.
