Thai Prime Minister Srettha Thavisin said Saturday that Japanese companies in Thailand should make quick decisions in their business operations amid an increasing market share by Chinese companies.
Srettha, who is visiting Tokyo for a summit between Japan and ASEAN members slated for Sunday, met executives of several Japanese automakers here Friday and agreed in principle about tax incentives to help them produce more electric vehicles in Thailand, he said in an exclusive interview with Kyodo.
The carmakers included Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., Isuzu Motors Ltd. and Suzuki Motor Corp., said Srettha, the businessman-turned-politician.
"You are not alone in the world of course. While the others are making quick decisions," Japanese companies need to make certain adaptations, Srettha said. Chinese carmakers have seen their share in the Thai EV market reach nearly 80 percent of late, according to a local bank research.
"Thailand will continue to be a base for automobile exports," he said, adding he hoped Japanese automakers, which have been manufacturing cars in Thailand for over 60 years, will continue to contribute to the Thai economy.
Thailand has been engaging in free trade negotiations with the European Union and Britain, to whom Thailand is exporting Japanese cars made in the Southeast Asian country, said Srettha, who is focusing on boosting the Thai economy, which is still on a recovery path after the COVID-19 pandemic.
Srettha is on his first visit to Japan since taking office on Sept. 5. He will hold talks with Japanese Prime Minister Fumio Kishida on Sunday on the sidelines of the special summit to commemorate the 50th anniversary of friendship and cooperation between Japan and the Association of Southeast Asian Nations.
