Notably, receiving government support is crucial as the company aims to expand its EV production in Thailand.
Thailand Business News reported that Asian Honda Motor Company CEO Toshio Kuwahara, Honda Automobile (Thailand) Hideo Kawasaka, and other Honda representatives met with Thai Prime Minister Srettha Thavisin last week to negotiate potential partnership and tackle EV production support within the country.
The meeting saw PM Srettha thanking Japan for its notable boost to Thailand’s automotive industry, particularly automakers like Honda. In response, the Japanese automaker declared plans to boost its electric vehicle production in the country as it aims to aid the government’s effort in promoting the shift to e-mobility.
Thailand is among the numerous countries aiming to lead the global market in electric vehicle manufacturing. That said, it is unsurprising that PM Srettha took the opportunity to discuss the county’s automotive industry policies during the meeting.
The Prime Minister reportedly instructed relevant government agencies to develop crucial policies encouraging partnership and mutual benefits across the EV supply chain.
Establishing a strong and reliable supply chain is crucial for Thailand to effectively bolster its EV industry. Government incentives, including rebates and tax credits, can significantly attract investments and encourage customers to join the shift to clean energy vehicles.
PM Srettha expects to dive deeper into its potential partnership with Honda on his upcoming visit to Japan in December.
Electric automakers boost EV production
According to BNN Network, Japanese legacy automaker Nissan also recently announced plans to boost its electrification efforts. It aims to produce electric counterparts of the iconic Qashqai and Juke vehicles at its Sunderland factory in the UK.
South Korean automaker Hyundai declared plans to allocate $84 million for the development of its EV battery pack factory in Chennai, India. The assembly facility is expected to hit an annual production target of up to 75,000 battery packs by 2025.
Honda’s electrification efforts will undoubtedly aid the government’s efforts in reaching its net-zero emissions target. It can also boost Thailand’s EV production to defend its position as the regional automaking hub in Asia. In return, Honda can capitalize on Thailand’s highly skilled workforce, strategic location, and government support.