In a bid to maintain its dominance in the Southeast Asian market, Toyota has launched a public transportation pilot program in Pattaya, Thailand using nine EV Toyota Revo pickup trucks. The move comes as Chinese EV manufacturers are increasingly challenging the stronghold of Japanese automakers in the region.
The battery-electric Toyota Revo has been converted into Baht Buses (Song-Taews) for fixed-route transportation in the popular resort city. This initiative by Toyota, the world’s top-selling automaker, coincides with the growing presence of Chinese EV firms in Thailand’s auto assembly and export sector. The Thai government has provided subsidies and tax breaks that have attracted over $1.44 billion in investment from Chinese EV automakers.
Chery Automobile is set to become the eighth Chinese brand to invest in Thailand, joining the likes of BYD, Changan Automobile, and Great Wall. Toyota, which currently controls about one-third of the Thai market, plans to deploy a dozen electric pickup trucks in Pattaya.
The city’s mayor, Poramet Ngampichet, expressed the significance of this move, stating, “Pattaya is a major tourist city for Thailand, and so lowering pollution is important.” The aim is to eventually convert Pattaya’s entire fleet of 700 song-taews to electric vehicles.
Pickup trucks are incredibly popular in Thailand, accounting for over 50% of vehicle sales. In line with this trend, Toyota has previously announced plans to mass-produce a battery-powered Hilux pickup vehicle by 2025. However, the manufacturing location for these vehicles has not yet been specified.
While Toyota takes steps toward electrification in Thailand, the domestic car sales in the country have seen a decline of 29.8% in March compared to the previous year. The sluggish sales are attributed to stricter vehicle loan conditions from banks, a sluggish economy, and a delay in state budget expenditure for fiscal 2024. However, industry experts remain hopeful that the situation will improve in the second half of the year with increased spending, investment, and tourism growth.
The decline in car sales has also affected the production of electric vehicles in Thailand. Surapong Paisitpatanapong, vice-chairman of the Federation of Thai Industries (FTI), explained that the country’s EV assembly factories are not yet prepared for commercial operation, leading to a need for imported electric vehicles. However, he expressed confidence that the number of locally made EVs will increase in the third quarter of this year.
Despite the challenges in the domestic market, car exports have been a driving force for the Thai automotive industry. In March, car exports increased by 7.1% from the previous month to reach 95,089 units. However, they fell by 3.3% compared to March 2023.
As Toyota continues to make strides in the EV sector, its battery breakthrough could significantly boost the adoption of electric cars. The company has been working on solid-state batteries, which offer improved energy density, faster charging times, and increased safety compared to traditional lithium-ion batteries. If successful, this technology could revolutionize the electric vehicle industry and further cement Toyota’s position as a leader in the market.
In conclusion, Toyota’s public transportation pilot program in Pattaya demonstrates its commitment to maintaining its dominance in the Southeast Asian market amid increasing competition from Chinese EV manufacturers. While the Thai domestic car sales have faced challenges, industry experts remain optimistic about a recovery in the second half of the year. Furthermore, the development of Toyota’s battery breakthrough could have far-reaching implications for the future of electric cars.