The Thai government’s Board of Investment (BOI) has recently approved investments worth THB 15 billion (US$ 468 million) by Isuzu Motors (Thailand) Company Ltd, as the Japanese automaker looks to strengthen the competitiveness of its Thai operations.

The BOI’s secretary-general, Narit Therdsteerasukdi, confirmed that his department’s “project consideration subcommittee” has approved two project proposals submitted by Isuzu Motors under measures aimed at upgrading its automotive operations.

The investments are expected to strengthen Thailand as a main global production hub for the automaker, and include increasing the use of production line automation, upgrading pickup truck technologies to include models that meet Euro 6 emissions standards, and also increasing the use of clean energy in its factories with the introduction of solar power generation.

Isuzu said it plans to increase automation in key manufacturing processes such as chassis and body welding, assembly and painting, and final vehicle assembly. The investments are expected to help improve quality standards, as well as lower production costs.

Isuzu is Thailand’s second-largest vehicle producer after Toyota, thanks to its strong pickup truck operations and its strong presence in the local truck market. The company produced close to 172,000 vehicles in the country last year, with pickup trucks accounting for around 76% of output.