Thailand approves electric vehicle investment plans of Nissan, Honda

Thai authorities said today they have approved investment plans worth 29.63 billion baht (RM3.8 billion), including projects by two Japanese automakers to produce hybrid electric vehicles and batteries.

Nissan Motor (Thailand), a unit of Nissan Motor Co will invest 10.96 billion baht in one venture while Honda Automobile (Thailand), a subsidiary of Honda Motor Co will spend 5.82 billion baht on its project, the Board of Investment (BoI) said in a statement.

The agency said it also approved a tax break for Thai AirAsia X’s 9.25 billion baht plan to lease six Airbus A330 aircraft, and for Mars Petcare (Thailand)’s 3.5 billion baht investment in pet food.

The BoI said Thai and foreign firms submitted projects worth 284.6 billion baht in January-June, which it said was “close to” the amount in the first half of 2017, without giving the previous number. The board said the projects were mainly for Thailand’s Eastern Economic Corridor a centrepiece of the junta’s policy to lift growth and targets high-tech investment.

The agency is sticking to its target of securing 720 billion baht in investment pledges this year, up 12% from last year, as large applications are expected in the second half, it said.

Meanwhile, Toyota Motor Corp’s Thai unit said Thailand’s total domestic car sales are expected to be 980,000 units this year, up 12% from 2017, and more than previously expected.

Toyota, which commands about one-third of the Thai vehicle market, also raised its own 2018 car sales in the Southeast Asian nation to 315,000 cars, up 31% from last year, Toyota Motor Thailand’s president Michinobu Sugata told a news conference. Sales have been supported by stronger economic growth and more activities by carmakers, he said.

In January, the company predicted overall domestic sales at 900,000 cars and its own sales at 300,000 units.