Nation Thailand
Carmakers won’t relocate instantly, but risks persist, expert says
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Japanese carmakers will not relocate manufacturing hubs instantly, but the current flood of Chinese electric vehicles is catalysing price wars in the Thai market, according to Dr. Archanun Kohpaiboon.
Key facts
- As Indonesia has urged Toyota to move its production base from Thailand to Indonesia with investment incentives, Archanun said it is too early to say whether Toyota would move, but Japanese automakers have voiced concerns over policy
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- The policy discrimination, especially from the policy promoting the use of battery electric vehicles in Thailand, starts from point zero
- I think that is the real concern, that it imposes a very price distortion into the system,”
Summary
As Indonesia has urged Toyota to move its production base from Thailand to Indonesia with investment incentives, Archanun said it is too early to say whether Toyota would move, but Japanese automakers have voiced concerns over policy discrimination.
“The policy discrimination, especially from the policy promoting the use of battery electric vehicles in Thailand, starts from point zero. I think that is the real concern, that it imposes a very price distortion into the system,” he said.