The government has pledged further investment privileges and full support for finance, research and development, human resources and infrastructure as it promotes Thailand as a production hub for hybrid, electric and hydrogen vehicles.
Prime Minister Prayut Chan-o-cha, who met yesterday with country chief executives from Toyota, Isuzu, Nissan and Honda, remains resolute that the government has a clear policy to support green-car production as a strategic move to upgrade Thailand as a production hub for future vehicles.
The four Japanese car brands accounted for 58% of Thailand's automotive shipments last year, which totalled 1.25 million units worth US$17.58 billion, led by pickup trucks and eco-cars.
Including equipment and parts, the export value amounted to $25.60 billion in 2015.
Chutima Bunyapraphasara, the permanent secretary for commerce, said the premier yesterday ordered the Industry Ministry to team up with the Finance, Commerce, Labour, Natural Resources and Environment and Transport ministries to map out the details of supporting plans covering investment privileges, tax incentives and other perks to continue drawing foreign investment in the automotive industry.
Related industries have also been ordered to jointly prepare the country's automotive development roadmap for the next five and 20 years.
Gen Prayut confirmed the government will continue supporting eco-car development but urged car makers to apply higher technology and alternative energy, including biodiesel and ethanol.
The government also pledged to offer additional privileges for pickup trucks which use biodiesel and look for ways to support the commercial use of B20, a blend of 20% biodiesel B100 or methyl ester with 80% hydrocarbon-based diesel.
The prime minister also encouraged the CEOs of the four Japanese car firms to invest in setting up a battery production factory for future vehicles.
Ms Chutima said the Japanese car makers vowed to continue investment in Thailand and were committed to investing in future vehicles if the government offers a clear-cut supporting policy.
They also asked about Thailand's current and future strategies to support automotive shipments, particularly through more free trade agreement (FTA) talks.
Toshiaki Maekawa, president of Tri Petch Isuzu Sales Co, said Isuzu has proposed the government increase promotional privileges for high-tech cars such as hybrid and biodiesel vehicles, while urging Thailand to conduct more FTAs in order to boost the automotive export market and increase the competitiveness of locally made cars.
Ms Chutima said the government has been proceeding with talks both under the framework of existing FTA pacts and new ones with partners like Pakistan, Turkey, Russia and some countries in the Middle East and Africa.