The eco-car program to be initiated by
Japanese car major Honda Motor is all
set to vroom ahead with its recent
decision to pump in close to $186
million in its facility in Thailand.
Honda's Bangkok-based Asia-Oceania
regional headquarters, Asian Honda
Motor Company had, in fact, initially
mulled over an investment less than
the current amount planned. However,
the sum went up to $186 million taking
into account that the Thai government
announced an Eco-Car policy in June
2007. According to Honda, the
government's Eco-Car policy made it
think big and increase the investment.
For the record, Thailand had, on June
15, 2007, announced that it will award
tax privileges to any automobile
manufacturer that invests at least 5
billion baht ($150 million) in the
local production of eco-cars that meet
the government's standards for the
project.
An auto report said that production at
the new Thai factory is scheduled to
start in October 2008 and is expected
to boost Honda's local auto production
capacity from 120,000 units to
240,000.
As per the Eco-Car policy spelt out by
the government, eligible companies
need to manufacture not less than
100,000 units per annum from the fifth
year and meet the government
requirements of manufacturing a
vehicle that consumes less that 5
litres of petrol per 100 km. The
vehicles are also stipulated to comply
with the Euro IV standards of carbon
emissions of less than 120 gm per km.
Car makers have been invited to submit
their applications for the tax
privileges by November 30, 2007.
Besides this, Thailand has also said
that the government would lower the
excise tax on eco-car models made in
Thailand to 17 per cent, compared with
the 30 to 50 per cent excise tax on
standard cars sold on the domestic
market.
Honda is the only contender as of now
to have jumped on the Eco-Car program
to date but even Honda has yet to
submit their project to the Board of
Investment for approval. Thailand is
in fact banking on its eco-cars
meeting international standards,
making it suitable to both domestic
and foreign markets.
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