Honda joins other firms producing electric cars in Thailand

Honda Motors of Japan will join the growing list of carmakers manufacturing hybrid electric vehicles in Thailand. Honda announced last week it would assemble its popular Accord hybrid in the Kingdom to take advantage of generous tax incentives and support.

The move by Honda follows recent similar announcements by both Mercedes-Benz and Mitsubishi Motors. Mitsubishi said it would begin producing hybrid electric vehicles (EV) in Thailand by 2021.  Mercedes said it would test and transfer technology for EVs and batteries to the Kingdom in collaboration with the National Science and Technology Development Agency.

The Thai government is promoting electric vehicles and related technologies as part of its national strategy to take Thai industries and development to the next level. The Kingdom is already a leader in vehicle production in Asia but is striving to stay ahead of the curve by attracting next-generation technologies as mobility solutions disrupt the entire industry.

Honda said that it would start by shifting production of its Accord hybrid sedan from Japan to Thailand. The sedan will hit the market in 2020. The company would then follow that by producing other EV models in the Kingdom willthereafter. The company said that Thai government incentives for producing greener vehicles led to its decision.

Honda has been producing non-electric vehicles in the Kingdom for decades and exports those vehicles to Japan and the world.

Honda considers the Accord its signature model, and the so relocation of production to Thailand is a sign of strong confidence in the Kingdom’s capabilities and long-term outlook.

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