Isuzu Announces 3.2 Billion Baht Investment in Thai Production Base for EV Pickups
Isuzu announces a 32 billion baht investment to produce electric pickup trucks in Thailand over the next 5 years, with plans for export to Norway.
Japan, Dec 26, 2023 - Isuzu Motors will invest a total of 32 billion baht (approximately 130 billion yen) in its production base in Thailand over the next five years, targeting the electrification of pickups (LCVs) and other initiatives. The investment is expected to include the start-up of production of electric vehicle (EV) type LCVs for Norway, as the Thai government aims to become a hub for EV production in Southeast Asia. Toyota Motor Corporation has also begun small-scale production of the Hilux EV model in the area of LCVs. Isuzu is rushing to set up a mass production system in Thailand in preparation for the growing demand for LCVs destined for Europe.
Isuzu positions Thailand as its mother base, supplying vehicles to over 100 countries and regions. The company produces vehicles such as the D-MAX pickup truck and the MU-X sports utility vehicle (SUV), with a total of 6 million units produced to date.
The details of the investment plan and the breakdown of the investment amount have not been disclosed, but the company says it is “significantly higher than in the past.” The investment is also expected to be used to update aging facilities such as the Samrong factory (Samut Prakan province) and the Gateway factory (Chachoengsao province) and will target improvements in production efficiency for diesel engine vehicles, line renovations for EV model production, and evaluation equipment. It is expected that Isuzu is developing an LCV EV model in anticipation of stricter environmental regulations in the European Union (EU). The company plans to export the product to various European countries, starting with Norway, where it is scheduled to go on sale in 2025, and will also set up a mass production system in Thailand.
Meanwhile, Toyota has begun small-scale production of an EV model of the Hilux and plans to demonstrate it in Pattaya, Thailand, in 2024. First, let’s assume that it will be used for public transportation.
LCVs are used for long-distance driving in suburban areas, and diesel engine vehicles are expected to be the mainstream for the time being. However, Isuzu believes that the conversion of LCVs to EVs will progress as each EU country formulates individual policies. While closely monitoring government policy, the company will embark on long-scale investments in preparation for the period when EV models become popular.
