Japanese companies played a pivotal role in establishing Thailand’s auto industry post-World War II. By the late 1970s, they dominated with a 90% market share, known for their reliable cars and investment in local supply chains.
In the 1990s, attempts by American and South Korean automakers to penetrate the market barely made an impact on Japan’s stronghold. However, recent years have seen a shift with the emergence of Chinese manufacturers offering affordable electric vehicles.
The influx of Chinese brands like BYD, Great Wall Motor, and SAIC Motor has raised concerns among Japanese automakers. Thai Prime Minister Srettha Thavisin recently urged Japanese companies to invest in electric vehicles to stay competitive against China.
Japanese automakers’ hesitance to fully embrace electric vehicles has affected their market share in Thailand. Brands like Mazda, Mitsubishi, Nissan, Suzuki, and Isuzu faced a 25% drop in new car sales last year due to their limited electric vehicle offerings.
