Japan and the Association of Southeast Asian Nations (ASEAN) will develop their first joint strategy on automobile production and sales within the Southeast Asian bloc, according to Nikkei Asia.
The move is apparently part of their efforts to curb the growing presence of Chinese companies in the electric vehicle space.
Japan & ASEAN develop joint strategy on auto space
Japan and ASEAN are on track to unveil their joint strategy for producing and selling automobiles in the region.
As per the report, the two parties aim to develop an interim solid joint strategy through around 2035.
Japan and ASEAN’s economic ministers are set to discuss the collaborative initiative in their upcoming meeting as early as September 2025.
The planned strategy aims to address the growing demand for stronger cooperation in personnel training and sustainable production practices in the automotive industry.
Potential coverage
The joint strategy will cover several key strategic areas, including decarbonization, mineral resource procurement, biofuels promotion, and investment in next-gen automotive technologies.
It will also reportedly focus on securing mineral resources for electric vehicle production to establish a solid supply chain that will support Japanese and ASEAN automakers.
Japan’s planned investment
Japan announced plans to use the 140 billion yen ($899.51 million) from the Ministry of Economy, Trade, and Industry to fund these initiatives.
The budget is aimed at supporting the Global South, primarily funding personnel training programs. Japan expects these programs to improve the skills and knowledge of ASEAN’s automotive workforce. In effect, it can establish a more competitive and revolutionary auto industry.
By forming this joint strategy, the two parties seek to build a resilient and cooperative automotive ecosystem that combats external competition and encourages sustainable growth. The collaboration will play a significant role in the global auto market as Japan and ASEAN seek to remain competitive amid the growing adoption of electric vehicles.
