At the ASEAN Summit held in the last week of May 2025, a Strategic Plan was adopted to guide the actions of the ASEAN Economic Community until 2030.

Although it was decided that the U.S. tariff rate on passenger cars from Japan will be reduced to 15%, it remains six times higher than the previous 2.5% level, making it more difficult than ever for Japanese OEMs and their suppliers to secure revenue from their U.S. operations.
Therefore, business in ASEAN has become more important as a source of revenue for Japanese OEMs and suppliers.
We have carefully examined and analyzed the strategic plan adopted this time, and we feel that there are many positive aspects for the Japanese auto industry.

On the positive side, the strategic plan focuses on the reduction of non-tariff barriers, which is expected to reduce logistics costs and shorten time to market, thereby increasing profits.
Furthermore, the updated framework for investment promotion is expected to reduce investment and financing costs, thereby reducing the amount of investment, and deregulation is also expected to facilitate the acquisition of highly skilled human resources by improving the mobility of human resources.
In addition, if the plan progresses smoothly, the establishment of common regional standards and technical standards and their linkage to international standards and standards can be expected to reduce legal compliance costs.
On the negative side, there is a possibility of an increase in costs associated with stricter environmental regulations, such as GHG emission regulations, and an increase in costs associated with stricter regulations related to consumer protection.

In Thailand, in particular, the market share of Japanese OEMs continues to decline. However, Japanese OEMs, who have established roots in ASEAN over many years, have a well-developed service network and high resale value backed by their robustness.
In addition, Japanese suppliers, who have been in the market for a long time in conjunction with Japanese OEMs, have established supply chains and know-how.
This strategic plan can be used as an opportunity to expand profits in the ASEAN region while leveraging these advantages.