Major Japanese automakers have committed to investing THB150 billion ($4.34 billion) over the next five years in a boost to Thailand's electric vehicle (EV) industry, aligning with the country's strategic shift towards EV production.

Toyota Motor Corp (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC) are each set to invest approximately THB50 billion Additionally, Isuzu Motors (OTC: ISUZY) and Mitsubishi Motors Corp (OTC: MMTOF) plan to contribute THB30 billion and 20 billion, respectively.

The investment will include the production of electric pickup trucks, reported Reuters.

Thailand, known as the largest car producer and exporter in Southeast Asia, has long been dominated by Japanese manufacturers in the automotive sector.

However, Chinese EV makers have recently started making substantial regional investments.

Carmakers like BYD Company (OTC: BYDDY) and Great Wall Motor Company have committed $1.44 billion in new production facilities.

Aiming to transform a third of its annual vehicle production of 2.5 million into EVs by 2030, Thailand is rolling out various incentives, including tax cuts and subsidies, to foster more investments into EV manufacturing.

Furthermore, Thailand's Prime Minister Srettha Thavisin is hopeful of an investment from the U.S. EV giant Tesla Inc (NASDAQ:TSLA).

Price Action: TM shares closed lower by 1.29% at $178.53 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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