Thailand Prime Minister, Srettha Thavisin announced Thursday that the Asian country will work with Toyota (NYSE:TM) to develop the country's electric vehicle (EV) industry. The decision came after Minister Thavisin held a meeting with auto executives.
"Toyota said it sees the potential of Thailand's auto manufacturing industry especially in pick-up trucks and eco-cars," the government said in a statement.
Toyota intends to test its first electric pickup truck in Thailand, aiming to stimulate electric vehicle sales in the nation, where it contends with increasing competition from Chinese companies.
For many years, Japanese giants such as Toyota and Honda Motor Co (NYSE:HMC) have maintained dominance in the world's 10th largest automobile hub, utilizing Thailand as a key export center.
Thailand aims to transform one-third of its annual 2.5 million vehicle production into electric vehicles (EVs) by 2030.
Moreover, Thailand's government recently introduced a three-year tax incentive for automakers investing in automation and robotics, following a reduction in consumer subsidies for EV purchases last week.
During the second quarter, the nation accounted for roughly half of all EV sales in Southeast Asia, with Chinese brands like BYD (SZ:002594) and Great Wall Motor leading the sales charts.
Shares of TM are up 0.32% in afternoon trading on Thursday.