Thailand's eco-car program is so popular, it might be easier for us to report to you who has not joined. VW confirmed Friday they joined after reports they submitted an application to the program in November. "We want to strengthen in South-East Asia," said the head of VW's office in Germany. The company reportedly plans to invest 27 billion baht (912 million dollars) in a plant near Bangkok. Volkswagen wants to double their output of cars from 3.4m vehicles last year to 6.5m by 2018. Once all seven companies (Toyota, Honda, Suzuki, Nissan, Suzuki, Tata, VW and possibly Ford) have received approval, it's rumored the investment in Thailand will total 60.17 billion baht (2 billion U.S. dollars). All that from a program for the production of cars that must get more than 57 MPG and emit less than 192 grams of CO₂ per mile.

Related:

• Tata might join automakers with a green car plant in Thailand
• Mitsubishi joins Thailand's eco-car project, Toyota submits application
• Toyota likes free money, signs on to Thailand's eco-car plan
• Suzuki and Nissan benefit from Thailand's low taxes for building cleaner cars
• Low Taxes for Eco-Car Makers in Thailand

[Source: Monsters and Critics]

Add Mitsubishi to the list of carmakers going to Thailand to make green cars. Mitsubishi will spend 20 billion yen (US$179 million) to produce some 100,000 cars cars a year with small engines, high MPG and low CO₂ emissions (this means engines that are 1.3 liters or smaller, vehicles that get 20km per liter (56.6 MPG) and emit less than 192 grams of CO₂ per mile (120 g/km)). We told you Toyota intended to submit the application November 30th and now, we have news Toyota has submitted their application as well to join the Thai eco-car program and will invest 17 billion yen.

The Thai government program involves giving tax breaks (a 50 percent cut in the excise tax, no income tax for 8 years and machinery imports duty free) to car makers to build eco-cars in their country, if they invest a significant amount in a plant. Thus far, the program has attracted Toyota, Honda, Suzuki, Nissan and even Ford is rumored to join the program. Honda has already invested 6,700 million baht (about $220 million US) in Thailand auto production facilities. Suzuki and Nissan are expected to invest 9,500 million baht ($313 million) and 5,550 million ($183 million). Thailand has also invited smaller car companies like Tata to make the air car in Thailand for a paltry $39M investment.

I guess this proves, finally, that big corporations like giant tax breaks.

Related:

• Low Taxes for Eco-Car Makers in Thailand
• Toyota likes free money, signs on to Thailand's eco-car plan
• Suzuki and Nissan benefit from Thailand's low taxes for building cleaner cars

[Source: Asia Pulse]

We already announced this for Toyota and for Honda, and now it's time for Suzuki and Nissan: Thailand is giving significant tax incentives for automakers who decide to build cars that are considered respectful to the environment. To be eligible for the tax incentives, a company must, first of all, be building vehicles that get better than 56.5 mpg (5 l/100 km) and produce less than 192 grams of CO₂ per mile (120 g/km).

According to our source news, Thailand is the most important producer of SUVs and pick-ups for Japanese companies, hence the government's interest in making these companies build greener vehicles. The picture above shows Nissan's current flagship in Thailand, the Navara pick-up.

The plan is working. Honda, for instance, has already invested 6,700 million baht (about $220 million US) in Thailand auto production facilities. Expected investment figures for Suzuki and Nissan are, respectively, 9,500 million baht ($313 million) and 5,550 million ($183 million). These new two plants could produce up to 138,000 Suzukis and 120,000 Nissans per year.

[Source: Finanzas.com via Econoticias]
[Edited: The plural of baht is baht (thanks to Snark for the correction)]

Building a new car, especially one that is advanced and sellable enough to carve its own niche in today's car world is very difficult. However, Thailand could be the place where it's easiest. Certain restrictions apply. See Thailand for details.

Oh, what the hey, I'll just give them to you. To be eligible for the tax incentives, a company must first of all be building vehicles that get better than 56.5 mpg, and produce less than 192 grams of carbon emissions per mile. The company must also invest at least 5 billion baht in the project - if you think that immediately rules you out, you're in luck, because that's only $147 million ... chump change. Said company must also produce at least 100,000 vehicles per year by the fifth year of the start of the project, else the incentives be revoked. If all of these qualifications are met, you're free and clear for up to eight years for sales tax exemption. They just this month lowered their excise tax to 17 percent, which doesn't sound too spectacular, but seems to be enough to kick off the new policy.

Note to Phoenix, Tesla, Palumbo, Loremo and all those others out there trying to make a green car: maybe you should invest in Mavis Beacon to learn a little Thai.

Thanks for the tip, Linton!

[Source: Monsters and Critics]