Facing Competition With China, Japan And ASEAN Plan To Susun Strategy Together For Vehicle Production

Prototype Afeela 2024, the car from the collaboration between Sony and Honda is now at Gran Turismo 7. (Doc. Afeela)

JAKARTA - Japan and the Association of Southeast Asian Nations (ASEAN) plan to create a joint strategy to increase car production and sales in the Southeast Asian block.

Reported by Nikkei Asia, Monday, May 20, the two partnered to fight the onslaught of Chinese electric cars that have affordable and sophisticated prices.

It aims to formulate a joint strategy temporarily until 2035. Japan's economic ministers and a number of ASEAN countries will meet in early September to discuss the matter.

This joint strategy is expected to include cooperation in personnel training, decarbonization in production, procurement of mineral resources, and investment in future generations such as biofuels.

Japan will take advantage of 140 billion yen obtained by the Ministry of Economy, Trade and Industry in its aid budget to several countries in the southern region for personnel training.

Some time ago, Honda promised to double its electrification and software investments to US$65 billion by the 2030 fiscal year to face stiff competition with a number of manufacturers from China, including BYD.

Various efforts were made by manufacturers from Japan to shift producers from the bamboo curtain country in the electric car segment, one of which was Nissan partnering with Honda in mid-March. This collaboration also aims to accelerate efforts towards carbon neutrality and eliminate the death toll from traffic accidents by strengthening technology and software.