The Japanese automaker Toyota wants to benefit from the rapid growth of the electric vehicle (EV) industry in Thailand by manufacturing electric pickup trucks in the country, a move viewed by an industry observer as a fresh effort to revamp its development of zero-emission cars.
Toyota is also keen to develop hydrogen-fuelled cars as Japan does not have a supply of nickel, which is used to produce EV batteries.
The country has a technology that can separate hydrogen from water, but has decided to focus more on electric mobility because it does not want to “miss the boat” in the field of EV technology, said a source familiar with Japan’s auto manufacturers.
The company plans to produce battery-powered pickups at two factories: one in the Samrong district of Samut Prakan and another at the Gateway City Industrial Estate in Chachoengsao.
“We will produce battery-powered Toyota Hilux pickups. Electric pickups suit customer demand and support the carbon neutrality campaign,” said Noriaki Yamashita, president of Toyota Motor Thailand.
Thailand is committed to achieving carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050.
Mr Yamashita did not reveal the details of the investment, which includes a plan to add EV production lines at the two factories.
Toyota chose the country as a production site for electric pickups because Thailand, a leading auto manufacturer, is developing its EV industry under a government incentive programme to promote the production and consumption of zero-emission cars, Mr Yamashita said.
He acknowledged sluggish pickup sales in Thailand after banks adopted stricter criteria for car loans because of elevated levels of household debt, but said he believes EVs will play a key role in improving Thailand’s automotive industry.
Domestic sales of pure pickups plunged by 31% year-on-year to 264,738 units last year, according to the Federation of Thai Industries.
Toyota expects its car sales in Thailand to total 250,000 units this year, commanding a 34.4% market share.
The company projects total car sales in the country of 730,000 units in 2024, down from an earlier estimate of between 750,000 and 800,000, attributed to the high level of household debt, a decline in pickup sales and weak purchasing power.
Domestic automobile sales last year totalled just over 775,000, a decline of 8.7% from the year before.
Mr Yamashita said he believes the Thai economy will improve in the second and third quarters this year, driven mainly by tourism. He said expected government stimulus packages should help nudge the economy forward.