Suzuki, Nissan eco-car or sub-B segment proposals before BoI

The Board of Investment (BoI) today will consider eco-car projects proposed by the Japanese automotive giants Suzuki Motors Corporation and Nissan, according to a senior BoI official who spoke on condition of anonymity.

Suzuki has proposed spending 9.5 billion baht to build a new plant in Rayong province for eco-cars with completely knocked-down (CKD) kit parts. It will have an annual capacity of 138,000 units and begin operations in 2010.

Nissan would invest 5.5 billion baht through subsidiary Siam Nissan Automobile to build more facilities and equipment for eco-car production at its assembly plant in Samut Prakan, as well as a CKD production unit. The plant, which would open in 2010, would have an annual capacity of 120,000 units.

The two Japanese carmakers are following in the path of Honda, whose eco-car project earlier received BoI investment promotional privileges.

The source also disclosed that Toyota Motors, the leader in domestic car sales, had also intended to seek promotional privileges today for its eco-car investment, but its proposal has been delayed.

Honda plans to invest 6.7 billion baht for a car and parts manufacturing plant in Rojana Industrial Estate in Ayutthaya with a capacity of up to 120,000 cars per year. It has proposed using a 1,300cc engine that would consume fewer than five litres of fuel per 100 kilometres, in compliance with BoI conditions.

The first eco-cars would be sold in Thailand and the rest would be exported to other Southeast Asian countries.

Meanwhile, AutoAlliance (Thailand), a joint venture between Ford and Mazda, has applied for promotional privileges for 20.8 billion baht worth of investment at its compact sedan car plant in Rayong province. It would have an annual capacity of 140,000 vehicle units and 105,000 pieces of auto parts.

Source : Boi thailand,Bangkok post