Toyota Motor Thailand is preparing to hold talks with the new government on oil and electricity policies, as surging energy prices weigh heavily on consumers considering car purchases.
The company also plans to raise the issue directly with new Industry Minister Varawut Silpa-archa.
Suphakorn Rattanawaraha, executive vice-president of Toyota Motor Thailand, said the auto industry faces mounting challenges from rising oil prices triggered by the Israeli-US conflict with Iran.
"Toyota has prepared information about the auto industry for discussion with government leaders, including regarding EV [electric vehicle] incentive schemes," he said.
Thailand's EV 3.0 programme, which offered tax cuts and subsidies to EV manufacturers, ended last year, while its second-phase EV 3.5 scheme is scheduled to conclude in 2027.
Electricity costs are also a concern. With liquefied natural gas (LNG) -- the main fuel for power generation -- becoming more expensive, Toyota is questioning whether battery-powered vehicles will remain cost-efficient compared with oil-fuelled cars.
Natural gas, including LNG, comprises roughly 60% of fuels used for electricity generation in Thailand.
The Energy Regulatory Commission recently announced the new power tariff of 3.95 baht per kilowatt-hour from May to August, up from 3.88 baht, applicable until the end of April.
Toyota is promoting hydrogen as an alternative fuel, highlighting its potential to reduce carbon emissions and support Thailand's net-zero target by 2050, 15 years earlier than previously planned.
Global disruptions are adding further strain. The closure of the Strait of Hormuz has affected Toyota's car deliveries to the Middle East, totalling 100,000 units.
The company is considering revising its production target in Thailand if the war continues.
Domestically, car bookings fell 5-10% between mid-March and April 2 as consumers grew cautious amid the economic slowdown, energy price hikes and geopolitical tensions.
Toyota expects short-term impacts from rising diesel and gasoline prices, but expressed confidence the government will step in to stabilise the situation.
With oil and electricity costs directly shaping consumer behaviour, the company believes government action will be crucial in guiding the auto industry through this turbulent period.
