Japanese automaker Nissan Motor Thailand will focus more on manufacturing hybrid electric vehicles (HEV) in Thailand, following the Board of Investment's (BoI) launch of an investment incentive package to promote HEV manufacturing.
A manufacturer eligible for the privilege, notably in the form of an excise tax cut, is required to invest at least 3 billion baht to produce HEVs domestically, according to the BoI.
Nissan Motor Thailand did not reveal the value of its investment, saying only that the budget should be higher than the 3-billion-baht threshold.
"We will launch five car models between 2025 and 2027 and are considering which models will be made in Thailand," said Toshihiro Fujiki, the newly-appointed president of Nissan Motor Thailand.
The company plans to make HEVs at a factory in Samut Prakan, he said.
Mr Fujiki was speaking after the BoI announced it would support HEV manufacturing by lowering the excise tax for HEVs from 2028 to 2032.
Nissan Motor Thailand is determined to continue its investment and further grow the company's business in Thailand, which is a major car manufacturing country in the region.
It will import new car models, including passenger cars, pickups and trucks, into Thailand next year.
Mr Fujiki expects the company's market share to increase to 3% this year, up from 2.2% in 2023.
In the first half of 2024, the company's domestic sales volume was roughly 5,000 units.
Like other car companies, the Yokohama-based car manufacturer is struggling with sluggish sales in Thailand's automotive sector and dealing with intensifying competition following the entry of Chinese EV makers into the Thai market.
The total number of Nissan showrooms in the country now stands at 141 in 2024, a drop from 161 last year.
The five new car models are expected to boost Nissan's car sales, following a gradual drop in its sales over the past 4-5 years, said senior vice-president Masao Tsutsumi.
The domestic car industry has been affected by the country's slow GDP growth and banks' stricter criteria in granting auto loans amid the high level of household debt, which raises concerns over non-performing loans.
In 2024, Nissan Motor Thailand expects total car sales in the country to be between 640,000 and 650,000 units.