Thailand - Second phase of Eco-Car programme to kick off next year

04/12/2013 - 17:09 | Suzuki,   | Karthik H

Thailand's aggressive push to get car manufacturers to make the country a small-car hub has been given a lifeline with the Thai government laying down the terms for the second phase of the "Eco-Car" scheme.

The second phase requires OEMs to make minimum investment of around THB 6.5 billion (Rs 1,258 crore), with a minimum capacity of 100,000 cars per year. This number should be achieved within four years from startup. The cars needs to meet Euro V regulations and have a maximum consumption of 4.3 liters/100km, along with maximum CO2 emissions of 100g/km.

Deadline for applications is March 31, 2014. The government will start issuing licenses towards the middle of next year with investments set to begin in 2015.

Suzuki A:Wind Concept side view at Thailand International Motor Show
According to this report, Hyundai, Kia and VW are keen to produce a benefit-laden 'Eco-Car' in Thailand. Image - Suzuki A:Wind, Suzuki's Eco-Car in 2014.

From the government, companies can expect 8-year corporation tax holiday, duty-free import of machinery and local sales incentives. This includes a lower excise duty of 14 percent (12 percent if the car is compatible with E85 fuel)

Ford-Mazda are keen to come on board, along with Honda, VW, Chevrolet, Hyundai-Kia and possibly a Chinese manufacturer as well. Phase I of the "Eco-Car" scheme saw the country netting a healthy THB 28.8 billion (Rs 5,500 crore) from these OEMs.

As a result of the first phase of the programme, launched in 2007, Thailand has a combined production capacity of 635,000 units from just five manufacturers that are Mitsubishi, Toyota, Honda, Suzuki and Toyota.

[Source -]

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