A senior Toyota Motor Thailand executive has warned the Thai government that the country’s automotive competitiveness is at risk unless EV industry policy improves.
Supakorn Ratanawaraha, Senior Executive Vice President of Toyota Motor Thailand, made the comments days after Indonesia’s finance minister urged Toyota to relocate its main manufacturing operations there.
His remarks are a policy warning aimed at Bangkok, not a statement of Toyota’s own plans. He did not say whether the company intends to stay in Thailand or leave.
Indonesia’s pitch
The comments follow a direct appeal from Indonesian Finance Minister Purbaya Yudhi Sadewa at the Gaikindo Indonesia International Auto Show in Tangerang on August 4.
Purbaya told Toyota executives that Indonesia would support the company, but only if it moved its main manufacturing operations from Thailand to Indonesia and established a supplier base there.
The finance minister argued that Toyota originally chose Thailand because Indonesia’s investment incentives and business climate were previously weaker, but said conditions had since improved.
He questioned why the regional manufacturing hub should remain in Thailand given Indonesia’s size as ASEAN’s largest economy. He pointed to Hyundai’s investment in Indonesia as evidence the country could attract major automakers, and cited streamlined licensing procedures across government ministries.
Indonesia’s automotive sector accounts for roughly one fifth of the economy, employs 1.5 million people and has production capacity of 2.5 million vehicles a year, according to Purbaya.
Indonesia is offering incentives including a luxury goods sales tax exemption of up to 100% and a government-covered VAT reduction of 40%, limited to battery electric vehicles and excluding hybrids and plug-in hybrids. Final details of the package are expected from President Prabowo Subianto.
Toyota Motor Corporation has not responded to the proposal or indicated any plan to relocate from Thailand.
Toyota Thailand’s response
Speaking in Thailand this week, Supakorn referenced Indonesia’s recruitment push as context, but directed his comments at Thai policymakers rather than at Indonesia or Toyota’s own board.
He said the central issue was whether Thailand was promoting “EV cars” or building “an EV industry”, describing these as fundamentally different in the economic value they create.
If vehicles are manufactured abroad with imported batteries and components, then only assembled in Thailand, he said, the country gains limited added value, employment, technology development or supply chain strength, regardless of where Toyota’s plants happen to be located.
He noted that Thailand had spent more than 60 years building its automotive ecosystem, including parts suppliers, a skilled workforce, factories, logistics and engineering capabilities. The executive questioned whether these advantages would remain competitive over the next ten to twenty years under current policy settings.
He pointed to the example of Thailand “losing Suzuki and gaining Neta”, which he said reflected incentive structures that tax internal combustion vehicles to subsidise EV adoption without a clear long-term strategy.
Also: Thaksin pushes for high EV tax to protect Thailand’s car industry
Supakorn raised unresolved questions around battery disposal and responsibility, and uncertain resale values for used EVs as the technology evolves.
He also questioned the readiness of charging infrastructure and whether the national power grid can support rising EV demand, noting that Thailand still imports natural gas for electricity generation.
Global market context
He referenced global market trends, saying EV growth in China has slowed after a period of rapid expansion and intense competition, while Europe continues strong EV growth supported by environmental policy.
In the United States, he said EVs account for around 10% of the market, with consumers increasingly favouring hybrid vehicles.
Toyota Motor Thailand’s projected output for 2026 is 1.45 million vehicles, a figure expected to decline.
EV sales in the first half of 2026 totalled approximately 100,000 units, with more than half of these imported rather than made in Thailand, according to figures cited by the executive.
A clearer roadmap needed
Supakorn called for clear and continuous government policy direction. He said Thailand should attract investors committed to building a complete ecosystem through technology transfer, infrastructure investment, workforce training and full supply chain development, rather than relying on tax incentives alone.
He said he wanted Thailand to remain a hub producing future vehicles, developing new technology, creating jobs and exporting globally across multiple powertrain types, including battery electric, hybrid, plug-in hybrid, biofuel, fuel cell and hydrogen vehicles.
Neither Toyota Motor Corporation nor the Thai government has issued a formal joint response to Indonesia’s proposal.
Supakorn’s comments stopped short of confirming or denying whether Indonesia’s offer had prompted internal discussion at Toyota.
The story Toyota Thailand executive urges stronger EV policy amid Indonesia bid as seen on Thaiger News.
