Toyota can’t CKD EVs in all ASEAN markets – will use each country’s strengths to offer low cost EVs for all

Toyota Motor Asia Pacific (TMAP), at its pre-show brief before tomorrow’s Japan Mobility Show opening, has revealed ongoing difficulties the company is facing in trying to set up a manufacturing plant for its upcoming EV models in the ASEAN markets. “All governments are telling us to invest in their country,” said TMAP president and Asia deputy CEO Hao Quoc Tien.

It’s only natural that nations would want an automotive giant like Toyota to invest in them – certainly with extra incentives offered as added stimulus. But, Toyota can’t possibly CKD its EVs in all ASEAN markets, according to Hao.

“In order to achieve a sustainable operation, the price has to be affordable. We need volume for that. Imagine if we have to make our EVs in this country, that country and every country, the prices of the components will end up being more expensive,” he explained.

However, Hao went on to say that Toyota had gone through a similar issue with its traditional models, and has worked out a solution that, in theory, should also work for its EVs. The Toyota Centres of Excellence model of having various countries “specialise” in different major parts, and then taking advantage of the ASEAN free trade agreement is key here.

“We will still localise the components (but not all in one place). Maybe Indonesia will manufacture the battery, and perhaps Thailand can make the electric motor. Then, another country can assemble the battery, and together we can all enjoy a low cost EV,” Hao elaborated.

In basic terms, Toyota plans to use each country’s own strengths to its advantage, ultimately to offer more affordable EVs for all ASEAN markets. Major countries will get some (though smaller) investments, keeping everyone happy. That sure sounds like a fair trade for everyone, but the question is, how will Malaysia fit into this?

GALLERY: Toyota EPU EV Pick-up Truck Concept

GALLERY: Toyota Land Cruiser Se EV Concept

Looking to sell your car? Sell it with myTukar.