Japan and the Association of Southeast Asian Nations (ASEAN) are set to collaborate on their first joint strategy for automobile production and sales within the Southeast Asian region, aiming to counter China’s growing influence in the electric vehicle (EV) market, as reported by the Nikkei newspaper on Monday.
The plan is to formulate an interim joint strategy extending through approximately 2035, with the economic ministers of Japan and ASEAN members expected to convene as early as September to discuss the details, Nikkei reported, citing unnamed sources.
The joint strategy is anticipated to include collaboration in areas such as personnel training, decarbonization in production processes, mineral resource procurement, and investments in next-generation fields like biofuels, according to Nikkei.
Japan aims to utilize the 140 billion yen ($899.51 million) secured by its Ministry of Economy, Trade and Industry in the budget for assistance to the Global South, primarily for personnel training, the report noted.
Honda Motor, one of Japan’s leading automakers, recently announced its commitment to double its investment in electrification and software to about $65 billion by fiscal 2030. This move comes as Honda faces increasing competition from various Chinese automakers, including BYD.
