Warawut, Minister of Industry, admitted feeling uneasy after Indonesia launched a campaign to attract Toyota to move its main production base. He is rushing to organize incentive packages for Japanese investors and to revise excise taxes and EV promotion measures to create fairness and keep Thailand on the global automotive production map.
Following Indonesia's government launching an aggressive campaign to invite Toyota to relocate its main production base from Thailand to Indonesia, offering top-level investment incentives to promote Indonesia as a global automotive production hub.
On 13 Aug 2026, Warawut Silpa-archa, Minister of Industry, commented on this issue, stating that Indonesia is an attractive new player, but Thailand and Japan share a long-standing, close relationship.
"Therefore, we must work together to overcome this challenge and implement various incentive measures to retain their presence. This requires cooperation from many parties to strategize and win them back," he said.
Meanwhile, regarding the electric vehicle (EV) industry, the government is considering new measures and adjusting excise tax bases to create fair competition between domestic manufacturers and imported vehicles, preventing excessive cost structure disadvantages.
At the same time, Supakorn Rattanawara, Senior Vice President of Toyota Motor Thailand Co., Ltd., told the Thairath Online news team that Toyota continues to invest in Thailand because the country has a key advantage: a strong and long-developed supply chain.
"We have many Thai parts manufacturers, but neighboring countries like Indonesia are responding and adjusting policies rapidly. Toyota already diversifies its investment risks, as seen with investments in countries such as China, India, Indonesia, and the Philippines."
Additionally, Supakorn advised the government to expedite clear, transparent automotive industrial policies that protect domestic producers. He suggested establishing criteria to differentiate between investors who set up production bases, create jobs, and develop Thailand's supply chain, and those exploiting legal and tax loopholes to import surplus goods into the Thai market. Read the full exclusive interview here (Supakorn, Toyota's leader, urges the government to swiftly protect Thailand's automotive production base and block investors exploiting legal and tax loopholes.)