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Japanese Automakers Aim for More Effective Utilization of ASEAN Production System

Japanese automakers use ASEAN as an important automobile production base. As global automakers are gradually shifting from ICEV-centered production around the world to BEV manufacturing, the same issue has also become a hot topic in ASEAN. In Thailand, BEV purchase subsidy is provided on condition that local production will be introduced in the future. Other countries are also aiming to promote the BEV industry and have already made some efforts toward this goal. On the other hand, as shown in the map below, low labor cost is the most competitive factor in ASEAN. Since the invasion of Ukraine, there is increased competition for resources and prices have been rising, making it difficult to obtain the mineral resources required for batteries and motors. ASEAN is rich in mineral resources, but additional investment is required for commercialization. Considering the cost of investing in natural resources and the continuous increase in labor cost, the advantage of low labor cost will decrease in the future.

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