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After dominating sales in Thailand for decades, Mazda, Nissan and other Japanese corporations are squandering their grip on a market that was long a regional hub.
By Daisuke Wakabayashi River, Akira Davis and Claire Fu
Daisuke Wakabayashi and Claire Fu reported from Bangkok and River Akira Davis from Tokyo.
Japanese corporations created Thailand’s automotive industry virtually from scratch, beginning in the years after World War II. In the late 1970s, Japanese brands accounted for around 90% of car sales in Thailand. They invested in building Thai-sourced chains and their cars were also widely perceived by consumers as reliable.
In the 1990s, American and South Korean automakers targeted the Thai market, but slightly controlled Japan’s share.
Today, the stronghold of Japanese car brands is nevertheless relaxing thanks to Chinese brands that offer everything they do not: electric cars at affordable prices. The influx of Chinese brands such as BYD, Great Wall Motor and SAIC Motor in more than two years is sounding the alarm in Japan.
In December, Srettha Thavisin, the Thai Prime Minister, visited Japan with a message to Japanese companies: act fast, invest in cars or you will lose to China.
“You are not in the world,” Thavisin warned Japanese automakers in an interview with Japanese media.
The reluctance of Japanese corporations to fully embrace electric vehicles, which are popular in Thailand, has held them back in the Thai market. Mazda, Mitsubishi, Nissan, Suzuki and Isuzu have taken the hardest hits, in part because of their limited levels of plug-in hybrid or fully electric models. Last year, new car sales in Thailand for these companies collectively fell 25 percent, while total sales fell nine percent, according to data compiled by MarkLines, an automotive information provider.
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