Summary of the 2035 Joint Strategy at the September Economic Ministers' Meeting
Japan and the Association of Southeast Asian Nations (ASEAN) are reportedly establishing a joint strategy to counter China's expanding market share in the ASEAN electric vehicle market, according to the Nihon Keizai Shimbun (Nikkei) on the 20th.
According to Nikkei, Japan and ASEAN aim to finalize a joint strategy through the Japan-ASEAN Economic Ministers' Meeting scheduled for September, targeting the period up to 2035.
The joint strategy includes specific cooperation measures such as ▲overall industry growth through talent development ▲decarbonization of manufacturing processes ▲investment in next-generation fields like securing mineral resources and developing biofuels ▲and joint information dissemination outside Japan and ASEAN.
ASEAN serves as a production base for Japanese automobile manufacturers such as Toyota and Honda. Vehicles produced by Japanese automakers in ASEAN exceed 3 million units annually, accounting for about 80% of total regional production. However, Japanese companies are feeling threatened as Chinese electric vehicle manufacturers accelerate their market penetration. For example, Thailand offers subsidies and tax benefits to companies manufacturing electric vehicles domestically, which Chinese companies like BYD have utilized to enter the Thai market. Last year, Chinese companies accounted for 85% of electric vehicle sales in Thailand.
Nikkei stated, "Japanese companies in ASEAN have traditionally operated independently. However, with the increasing entry of Chinese companies such as BYD, there is a growing need to incorporate joint strategies at the government level. For ASEAN, partnering with Japan, which is reliable in technology and talent development, is advantageous."
Accordingly, Mitsubishi Motors is considering cooperation with Thailand's state-owned energy giant PTT for electric vehicle production, sales, and export. Toyota also plans to collaborate with CP Group, Thailand's largest company, to promote carbon dioxide reduction demonstrations through the electric version of its flagship pickup truck, the Hilux.
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