(Source: Thailand Investment Review, July 2018)
Nissan’s worldwide footprint
With offices in six regions across the world – Asia & Oceania; Africa, the Middle East & India; China; Europe; Latin America; and North America – Nissan is one of the world’s largest full-line vehicle manufacturers, producing more than sixty different car models under the Nissan, INFINITI, and Datsun brands. Driven by a company-wide desire to provide “Innovation that Excites”, Nissan continues to lead the way in areas that include electric vehicles, electrification, and sustainability.
Founded in 1933 in Yokohama, Japan, Nissan has been a frontrunner in vehicle design, manufacturing, and innovation for the past 85 years. In 2017, the company sold more than 5.7 million cars for total yearly revenue of 11.9 trillion Japanese Yen (approximately 3.5 trillion Thai Baht). This strong sales performance is indicative of Nissan’s global reputation and its commitment to becoming one of the top three automotive companies in customer service and support.
Nissan M.O.V.E. to 2022
As part of its plan to boost global sales and increase company revenues, on 1 April 2017 Nissan launched its six-year midterm strategy known as “Nissan M.O.V.E. to 2022”. The aim of this plan is to ensure that Nissan achieves sustainable growth, while simultaneously taking the lead in developing the technology and business evolution of the automotive industry. Nissan M.O.V.E to 2022 midterm plan targets technology evolution with electric vehicle leadership, autonomous driving expansion and the delivery of mobility services.
As such, Nissan is making a concerted move to extend its leadership in the electric vehicle sector. Among the targets, Nissan is aiming to sell 1 million electrified vehicles globally – either pure electric models or those with e-POWER powertrains - annually by the fiscal year 2022. Such efforts have been symbolized by the popularity of the world’s best-selling all-electric vehicle, the Nissan LEAF.
Why did Nissan choose Thailand as the location for its regional headquarter?
Thailand is a competitive market in Southeast Asia and has been a strategic market for Nissan in the Asia and Oceania region: both for sales and manufacturing. The Thai government had been channeling resources to create a climate that enhances competitiveness, encourages investment and improves workforce opportunities for the automotive industry. Thailand is also rapidly becoming a regional production hub for South East Asia. The country offers a dual advantage in terms of a large domestic market as well as an established automotive cluster of component suppliers. Situated in the center of Southeast Asia, the world’s fastest growing regional market, Thailand also offers convenient trade and easy access to other countries in the region.
How important is the support provided by the Thai Government and the BOI for Nissan?
The government’s supportive policies are a major reason why Thailand remains such a desirable regional base for many companies in the automotive industry. With the Thai government and the Thailand Board of Investment (BOI) providing a variety of tax and non-tax incentives to foreign investors, Thailand’s automotive manufacturing industry is expected to continue its strong growth well into the future. Some of the government benefits available to investors include Corporate Income Tax (CIT) exemptions, import duty exemptions, and the approval of permits for foreign experts and workers.
In addition to the general support provided to the automotive industry, Thailand has also begun offering additional incentives for the production of ‘green vehicles’. For example, there have been significant reductions to excise tax rates for battery electric vehicles, with rates falling from 10% pre-2017 to 2%. These policies have come about as a result of the Thai government’s proclamation that the development of the next generation automotive industry is one of Thailand’s ‘10 targeted growth industries’.
Nissan’s vision for the future
Nissan Motor Thailand offers its valued customers across the spectrum: from regular ICE vehicles to ICE (HEV) – the first Hybrid SUV – to our e-POWER technology and the LEAF, the first mainstream Intelligent Electric Vehicle all the way to the GT-R, Nissan’s super sports car.
Nissan believes electric vehicles are the future of the automotive industry and recently commissioned a study, “The Future of Electric Vehicles in South East Asia”, conducted by Frost & Sullivan with consumers in Singapore, Indonesia, Thailand, Malaysia, Vietnam, and the Philippines.
The survey found that awareness of Electric Vehicles is high in Thailand, at 82% of those surveyed, with 44% of those saying they would consider an EV when making their next vehicle purchasing decision. They would also be willing to pay up to 50% more for an EV than a traditional ICE vehicle. This is deeply encouraging and shows that our decision to bring the Nissan LEAF to Thailand is the right one. As such, Nissan remains committed to the development of innovative products such as e-POWER and electric vehicles (Nissan LEAF and other models) – both essential elements for creating a smart, clean, and sustainable future.
By continuing its engagement with key government stakeholders such as the Metropolitan Electricity Authority and the Thailand Board of Investment, Nissan will remain a crucial driver in the electric vehicle in Thailand and in creating a better and more efficient driving future within Thailand and the region.