March 24, 2008
BANGKOK - The eco-cars tend to come on strong amidst soaring oil prices and concerns about greenhouse gas emissions.
Tax breaks for automakers and car buyers were unveiled last year as the government wanted to encourage automakers to produce the fuel-efficient eco-cars.
Thailand produces 900,000 one-ton trucks every year -- about three-fourths of global output. But the government is afraid Thailand's position as the world's biggest maker of light pickups might not be enough to guarantee the future of its auto industry.
Automakers were encouraged to set up their production bases for eco-cars here.
Eco-cars run on fuel with a 20 percent ethanol component.
Sales taxes on smaller cars were also slashed from January 1, which sent sales booming in the first two months of the year, according to AFP.
"First-time car owners, and especially motorcyclists who want to become car owners, are cost-conscious consumers," said Surapong Paisitpatnapong, spokesman for the Federation of Thai Industries' automotive club.
Seven automakers including Toyota, Volkswagon, and India's Tata have proposed eco-car projects to Thailand's Board of Investment. Four have already been approved, according to Surapong.
The excise tax for eco-cars is reduced to 17% compared to 30-50% in the previous time.
"Eco-cars are going to be hot in Thailand's auto market. The lower prices for these minicars, along with high oil prices, will drive up the demand," said Nongnapat Wilepana, a Nissan dealer in Bangkok.
