Six auto-makers have confirmed they will proceed with eco-car production plans despite the government’s recent focus on support for E85 cars, Thai Automotive Industry Association senior vice president Piengjai Kaewsuwan said yesterday.
After having granted tax incentives for the eco-car projects, the carmakers are now worried about tax incentives announced by the Samak government for E85-compatible vehicles, because this will encourage importation of the biofuel-driven cars, Piengjai said.
The Board of Investment has granted tax incentives to six eco-car projects being undertaken by Toyota Motor Thailand, Honda Automobile (Thailand), Siam Nissan Automobile, Mitsubishi Motor (Thailand), Suzuki and India’s Tata Motors. Investment in the six projects amounts to Bt43.44 billion.
Piengjai, who is also an executive of Nissan Motor Thailand, said the six auto-makers would go ahead with investment in their eco-car production plants, with plans to begin production in 2010, except Toyota, which will start production in 2012.
Eco-car production will boost the Thai economy and create employment opportunities, because of the high level of investment from the six companies.
This will lead to Thailand becoming the Detroit of Asia and joining the top 10 car-producing countries in the world by 2011, when the Kingdom expects to produce 1.8 million vehicles.
More than 50 per cent of eco-car production will be exported, she said.
Suvit Tia, a lecturer at King Mongkut’s University of Technology Thon Buri, said the E85 tax incentives would create a shortage of vehicle materials.
The government should give more support to eco- and hybrid cars rather than promote E85, because Thai drivers are already able to use E20 gasohol.
Oil companies are also unhappy about selling E85, as they will have to invest between Bt1.5 million and Bt3 million at each station that serves E85, which is high investment catering to low demand, he said.
Source : Nation news
1 comment so far ↓
Actually any cars with Multiport Fuel Injection system can easily convert to E85 with a Flex Fuel Kit. See http://www.flexfuelthailand.com
With 20 over years of experience from Brazil, cars that can run on E10 can use this kit without any other changes to the car. Thailand gasohol 91/95 are both E10 fuel.
Most cars made from 1995 can use this kit. Hondas, Toyota, Nissan, BMW, Benz, Mitsubishi etc.. No problem.
It is that easy.
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