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Toyota Launches Bold Decarbonization Campaign in Thailand with Key Partnerships

Toyota's ambitious plans involve partnerships for carbon neutrality and electric vehicle initiatives, signaling a major industry shift
t 7203.TSE Blue Chip 150
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Toyota Motor is gearing up for an extensive decarbonization campaign in Thailand, collaborating with major local businesses like the Charoen Pokphand Group. This initiative, focusing on the commercial demand for electric and fuel-cell vehicles, represents a significant pivot in Toyota’s strategy in the region.

Toyota Chairman Akio Toyoda, emphasizing the need for tangible experiences in achieving carbon neutrality, led the company’s efforts during a recent visit to Thailand. Despite a crisis at home involving flawed safety tests by subsidiary Daihatsu, Toyota’s top executives remained committed to advancing their decarbonization agenda in Thailand.

The partnership includes CP Group, a global agribusiness giant, and Siam Cement Group, significantly owned by Thai King Maha Vajiralongkorn. This collaboration spans various industries, a rare occurrence in Thailand. They aim to achieve carbon neutrality, working alongside Commercial Japan Partnership Technologies, backed by Toyota and Isuzu Motors, and a Thai leasing company.

A key highlight of Toyota’s initiative is the innovative use of hydrogen fuel. At a recent race in Buriram, Toyota showcased a hydrogen-powered Corolla, fueled by hydrogen derived from chicken manure from CP Group’s poultry farms. This venture into alternative energy sources, demonstrating the potential of biofuels, aligns with the company’s broader environmental goals.

Toyota’s commitment to Thailand’s decarbonization is deep-rooted, bolstered by the country’s rapid move towards electrifying automobiles. The Japanese automaker, holding over 30% market share and known as “the Detroit of Asia,” is poised to leverage its strong ties with Thailand.

The company plans to develop electric versions of popular models like the Hilux pickup truck for logistics use, in collaboration with CP Group and Siam Cement Group. With EV sales in Thailand soaring, Toyota’s entry into this market segment, particularly in the pickup truck category, is timely.

Toyota’s strategy includes a two-pronged approach: competing in the passenger EV market against Chinese manufacturers and developing a business market for electric pickups. This move, driven by the need to catch up with Chinese EV dominance, signals a major shift in Toyota’s focus towards sustainable and innovative automotive solutions.

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