Thai minister hails partnership with Japan carmakers amid Chinese EVs' rise

Thailand's Industry Minister Varawut Silpa-archa has emphasized the country's ongoing partnership with Japanese automakers, despite the growing influence of Chinese electric vehicle manufacturers. In an interview with Kyodo News, Mr. Varawut stated that the government plans to reduce excise tax rates for EVs produced locally and increase them for those utilizing foreign parts later this year.

This move aims to level the playing field and ensure Japanese automakers receive fair treatment, as their share in Thailand's market has declined from around 85% in 2020 to below 70% by 2025, according to market research. The minister likened the Thailand-Japan trading relationship to a long-term marriage, highlighting Japan's commitment to building a strong foundation in Thailand rather than merely investing and leaving.

BYD and other Chinese automakers have been gaining market share in Thailand, which has been promoting EV imports through lower tariffs and tax incentives. Japanese companies, including Toyota and Suzuki, are struggling to compete with Chinese automakers. Despite concerns over the after-sales service of Chinese EV makers, Mr. Varawut assured that Thais view cars as assets and remain loyal to the Japanese brand, trusting their reliability.

He also called on Japanese automakers to contribute to the country's growing demand for used EV battery recycling, suggesting the establishment of a dedicated recycling industrial estate. The minister plans to visit a Japanese recycling plant during a November trip to discuss cooperation in energy and industrial fields with his Japanese counterpart.