Mitsubishi Corp plans to manufacture electric automobiles in Thailand

 

   

BANGKOK (NNT) - Japan has plans to manufacture electric automobiles in Thailand with a targeted 13 billion yen in total sales by 2021 and with venture capital of an additional 12 billion yen by 2024.

 

Deputy Prime Minister Somkid Jatusripitak welcomed Japan’s Mitshubishi Motor Corp Chief Executive Officer Osamu Masuko, who gave a briefing on the firm’s expanded investment and progress of its automobile manufacturing plans in Thailand.

 

Kobsak Pootrakul, deputy secretary to the Prime Minister, confirmed that Mitsubishi Motor Corp plans to invest some 13 billion yen in venture capital in Thailand by 2021 and some 12 billion yen in 2024.

 

Such automobile manufacturing plans will be discussed with the Board of Investment in search of promotional privileges. If the Japanese firm invests in the electric vehicle manufacturing industry in Thailand, Thailand would become the leader of this kind in ASEAN. Thailand will manage to find a world-class battery manufacturing firm to co-invest, as proposed by Japan.

 

’’Thailand has had a policy to promote the manufacturing of electric automobiles for a long time. We have discussed it with Japan, which may use Thailand as a regional base for the manufacturing. Mitsubishi could be the first firm to steer such manufacturing plans. We will be very glad and the deputy prime minister confirmed Thailand is ready to support whatever Mitsubishi may wish us to support. Today, we discussed the plans and various promotional privileges granted by China and Europe. We will consult with the BOI on that matter.’’

 

Mr Kobsak said the Bank of Thailand will closely follow the situation in which the U.S. Federal Reserve has cut the prime lending rate by 0.25%. However, it could be favorable to the extent that investors might relocate investment from the U.S. to other countries. Thailand is one such country.

 

-- © Copyright NNT 2019-08-02

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6 hours ago, webfact said:

We will be very glad and the deputy prime minister confirmed Thailand is ready to support whatever Mitsubishi may wish us to support.

Please please please keep giving us sub-contract work as we don't make anything ourselves !

7 hours ago, webfact said:

We have discussed it with Japan, which may use Thailand as a regional base for the manufacturing. Mitsubishi could be the first firm to steer such manufacturing plans.

I wonder how much of Trump's tariff war with now Japan and China is driving this proposal?

I'm sure Mitsubishi is very capable of producing its own electric cars in Japan.

If Mitsubishi electric cars are produced in Thailand and exported directly to the U.S., Japan might avoid Trump's tariffs. Especially as the U.S. government seems so favorable now to the "newly elected" Thai government and overlook such export machinations. But such a political basis might be short-lived given Trump's sometimes erratic and incomprehensible foreign economic policies, and potential for a 2020 Trump successor.

I love it. Any movement towards more environmentally sound vehicles here is a good thing. They stopped making the Prius here, due to lack of sales, as the pricing was ridiculous. The same Prius that could be purchased for $25,000 in the US, cost 1,400,000 baht here. Hope they can make their cars more affordable. 

 

 

Don't pat yourself on the back too hard Somkid! After all it is only a "plan". The economic and political winds of change can sweep over Thailand in the blink of an eye, as happened in 2014.

Thailand is not the only S.E. Asian country to get the benefit of Mitsubishi's motor vehicle investments. 

Vietnam already has one Mitsubishi motor vehicle plant and another electric automobile car plant (30,000-50,000/pa) is expected to be up and running next year. 

https://www.vir.com.vn/mitsubishi-motors-to-invest-250-million-in-second-factory-in-vietnam-55599.html

 

Good luck with that.  Right now most expats would hold off on any major purchases.  Something about a grossly overpriced currency...