Phase II of eco-car project likely to attract up to six automakers, investment of Bt40 billion
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THE INDUSTRY MINISTRY expects the second phase of the eco-car project to attract interest from as many as six auto-makers, and investment of at least Bt40 billion.
Industry Minister Prasert Boonchaisuk yesterday said he believed the Board of Investment’s (BoI) second phase eco-car investment-promotion project should attract five or six automobile manufacturers, one of which was likely to be a company already taking part in the first phase.
Interested companies can apply for investment support from the BoI until March 31 |next year, with the first of the new eco-cars |expected to be available in the market early in 2015.
When combining both phases of the project, there will be a combined production capacity of 930,000 eco-cars in 2018 – and an overall Thai auto-production capacity of more 3 million vehicles.
Of the total production at that time, 70 per cent will be for exports, compared to the current 50:50 split between overseas and domestic sales.
The minister said auto-makers interested in phase-two production must meet the BoI’s investment criteria, most importantly a minimum outlay of Bt6.5 billion in a fully integrated automobile production-line system – vehicle assembly, engine and components manufacturing – and an annual production capacity of at least 100,000 units, as of the fourth year of production.
Investment in the second phase of the |eco-car project is expected to exceed Bt40 |billion, against Bt30 billion in the first |phase.
Engines for the second phase must be of the Euro 5 standard type, with carbon-dioxide emission of not more than 100 grams per kilometre, fuel consumption of not more than 4.3 litres per 100km, and an engine size of not more than 1,300cc for petrol and 1,500cc for diesel.
The second phase of the project will |offer equal opportunities to existing eco-carmakers and newcomers, so as to ensure fair competition, which should benefit the |growing Thai automobile industry, Prasert said.
Recipients of phase-two BoI investment privileges must commence production by 2019 at the very latest, he added.
Meanwhile, BoI secretary-general Udom Wongviwatchai will invite all auto-makers interested in the second phase to attend a briefing on the details – including investment terms and conditions, investment promotions/privileges and tax incentives – within the next two weeks, in order to ensure a good understanding of the project.
