Jakarta, CNN Indonesia —

Akio Toyoda, Chairman of Toyota Motor, recently made a visit to Thailand, where he met with Prime Minister Paetongtarn Shinawatra in Bangkok last month. Their discussions focused on strategies to boost the automotive market in Thailand.

This visit by Toyoda was a reciprocal gesture following the trip made by Thailand’s Minister of Industry, Akanat Promphan, to Japan in November 2024.

During his visit, Toyoda emphasized the significance of Thailand as a key hub for production and development. In response, Paetongtarn expressed his commitment to enhancing the sales of hybrid vehicles.

A source close to the government indicated that Toyoda’s efforts to promote hybrid vehicles present a significant opportunity, especially given the declining sales of electric vehicles (EVs) in Thailand.

“As demand for EVs slows, Toyota sees this as a major chance to enhance its lobbying efforts,” remarked a Japanese government source in Thailand.

Nikkei Asia reported that Toyoda’s visit aimed at garnering support from Thailand for pickup trucks and hybrid vehicles.

“Toyota stands out as one of the few companies capable of lobbying various factions, including the prime minister and other politicians aligned with former Prime Minister Thaksin Shinawatra, as well as senior officials like the Permanent Secretary of the Ministry of Industry, Nattapol Rangsitpol, and influential figures within the royal circle,” the source added.

According to the Federation of Thai Industries, new vehicle sales in Thailand dropped by 27 percent in the January-November 2024 period compared to the previous year.

Specifically, EV sales fell by 5 percent to 61,443 units after soaring nearly eightfold in 2023, reaching about 76,000 units.

In contrast, hybrid vehicle sales surged by 32 percent during the same period, totaling 105,434 units.

The Toyota Yaris Cross remains one of the most popular models in the Thai domestic market.

In July, Thailand decided to maintain the tax rate for hybrid vehicles at 6 percent, scrapping plans to increase it by 2 percent every two years.

However, there are greater government incentives for EVs, including subsidies of up to 100,000 baht (approximately Rp46.8 million), with the goal of ensuring that 30 percent of vehicles produced there are electric by 2030.

“The Thai government has recognized that the EV sector is struggling and is seeking ways to adjust its strategy,” said an executive from a Japanese automotive company.

[Gambas:Video CNN]

(can/mik)

[Gambas:Video CNN]