
Toyota Motor Corp chairman Akio Toyoda has pledged to invest 55 billion baht in Thailand to expand production of hybrid cars, according to the government.
Industry Minister Akanat Promphan said the investment would involve retooling production lines to support production of both internal combustion engines and battery-powered electric motors for hybrid vehicles.
The investment will also lead to job creation, technology transfer and manpower development, he said after a meeting on Wednesday between Mr Toyoda and Prime Minister Paetongtarn Shinawatra at Government House.
No other details were immediately available.
According to government spokesmen, the prime minister reaffirmed the government’s readiness to align its policies to the needs of the automotive industry, balance the interests of both manufacturers and consumers to achieve mutual economic benefits.
She emphasised the government’s commitment to supporting investment and fostering confidence in Japan’s manufacturing sector in Thailand, as well as in Thai businesses in related industries and local parts producers.
The policies will include the promotion of sustainable growth in the electric vehicle (EV) industry while the government works to advance its green energy initiatives.
Mr Toyoda thanked the premier and the government for their longstanding support to the industry.
Toyota has been operating in Thailand for over 60 years, with the country serving as a key production hub .
He highlighted the quality and standards of Thai-made automotive parts, which are recognised as being on par with those manufactured in Japan.
Both sides discussed strategies to strengthen the automotive industry in Thailand. They agreed on the importance of policies and measures to meet the needs of automotive users and businesses, particularly in the production of hybrid vehicles.
Toyota, the world’s largest automaker, has been criticised for selling a relatively low number of EVs, but its decision to focus on hybrids has been paying off financially.
The company recently cut its electric vehicle production targets for 2026 by a third, according to Reuters. It had initially been targeting output of 1.5 million EVs in 2026, but will now aim to produce around 1 million.
In the financial year to March 31, 2024, Toyota sold a record 10.3 million cars worldwide, according to Bloomberg. Hybrids accounted for 3.5 million units, up 31% from a year earlier.