Expand rebate plan: Ford

After meeting with Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong yesterday, Ford Asean president Peter Fleet said the company was confident the government would extend the benefit to 1.6-litre passenger cars (with cylinder capacities of 1,600cc), as its Fiesta model has high fuel efficiency and low CO2 emissions.

"It will be a big issue if the Thai government excludes 1.6-litre cars from the first-car buyer scheme. The issue is a primary concern for the firm, which fully expects the Thai government to extend the privileges," he said.

 At present, the Fiesta 1.6 does not qualify for the programme, which is limited to models with engine displacement no bigger than 1.5 litres. If the government extends the tax rebate to vehicles with the larger engine size, the first-time car buyers for this model will also enjoy a Bt100,000 tax rebate.

Fleet said Fiesta sales now account for 40 per cent of Ford Asean's income. Ford produces more than 500,000 cars a year, most of them for export. Fleet expects sales in the domestic market will continue to increase thanks to the government's policy of promoting car ownership.

 Kittiratt said the government would carefully consider the idea. He said Ford believes Thailand has the potential to become Asean's largest destination for automotive investment. The government and carmakers will increase cooperation to promote investment and develop the industry, the deputy premier said.

 After meeting with Toyota Motor Thailand president Kyoichi Tanada, Kittiratt said Toyota is optimistic the Kingdom will continue to serve as a strong base of production and sales for Toyota, Japan's largest auto-maker.

 Toyota supports the government's policy to increase the daily minimum wage, Kittiratt said, adding however than Tanada said the firm expects the wage hike to be developed in line with production capacity and human-resources development. The company also called on the government to ensure that small and medium-sized enterprises based in Thailand will be competitive with those in other countries following the implementation of the wage policy.

 After discussions with representatives of the Japan External Trade Organisation (Jetro) and the Japanese Chamber of Commerce, Kittiratt said Japanese investors expressed confidence in the government's policies to boost domestic growth, as they would increase sales of Japanese goods.

 Jetro Bangkok president Setsuo Iuchi said that some small firms may struggle to adapt to the government's policies, including the wage hike. However, Jetro expected to see more Japanese investment in Thailand next year following the government's strong emphasis on stimulating domestic consumption.

 Iuchi added that as the country's economy is based on exports, he expects the government to pursue a balanced policy to promote foreign direct investment and exports, as well as the domestic economy.

Pongpanu Svetarundra, director-general of the Excise Department, previously said that the department was considering extending the coverage of the first-car scheme to larger cars, but vehicle prices would be capped at Bt1 million. Deputy Finance Minister Boonsong Teriyaphirom also earlier indicated that the ministry might expand the coverage, saying that the ministry was looking at the issue.