Industry, govt hold key to vehicle efficiency for a competitive, clean automotive sector

According to Kasikorn Research Centre, traffic jams in Bangkok cost Bt11 billion each year in lost opportunity costs. And consumer spending on vehicle fuels accounts for more than 10 per cent of monthly average wages. 
At the same time, local air pollution is estimated to cut short the lives of 22,375 people per year and Thailand must take significant action to achieve its CO2 targets. One overlooked solution to these problems is not a quick-fix or a specific technology, but rather, in a word, “efficiency”, a low-hanging fruit that some call the “cheapest fuel”.
A sustainable Thailand – sustainable in two senses, economically and environmentally – means that it needs to build on its strong automotive base. And in order to grow and to export to an increasingly regulated global market – more than 80 per cent of the global automotive market has vehicle efficiency standards – a domestic push for vehicle efficiency is needed. Increases in car ownership and road construction are not ends in themselves, and as traffic worsens, so will the time and fuel wasted.
Thailand is already a leader in Asean by having reformed its excise tax system to one based on grams of CO2 per kilometre, a technology-neutral metric, which only counts the output rather than picking and choosing winners in terms of technologies.
More work remains to be done, however, and the project on Energy Efficiency and Climate Change Mitigation in the Transport Sector in the Asean Region, under the implementation of the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH, a provider of international cooperation services for sustainable development, is supporting Thailand to enhance the fuel economy of its land transport sector, including not just cars, but also pickup trucks and (policy-wise, oft-neglected) motorcycles.
Energy efficiency ensures that the overall land transport sector moves towards increasingly efficient vehicles, which eventually would include zero-emission vehicles, such as electric vehicles.
Three ways Thailand can improve the fuel economy are: better labelling, revised fuel taxation, and an enhanced excise tax system. These three solutions could save money for consumers and for the country. And it seems consumers are catching on. When looking to buy a new car, Thai drivers already prioritise fuel economy, according to one recent survey.
So, what is the role of industry? Well, for one, through deployment of technological improvements such as turbo-charging, downsizing and electrification. 
Start-stop engines would be especially useful in Bangkok traffic. Industry can also work with government in enhancing its policy measures, to get the right long-term signals towards making increasingly efficient vehicles and to avoid disruptive surprises.
In Europe, the automotive industry initially fought standards, but has since seen a growth in jobs, competitiveness, and increasing exports accompanying increased efficiency standards. Without these standards, energy efficiency would not have happened on its own. 
Thailand, GIZ and the Office of Transport and Traffic policy and Planning are attempting to foster strong cooperation among stakeholders as a key step towards fuel economy improvement.
With the collaboration of industry and government, not to mention media, academia, and consumer groups, among others, Thailand can prosper with a clean, efficient, affordable and sustainable transport system, connecting goods and passengers, including a vibrant auto sector prepared for the future.

Contributed by Tali Trigg, project director, GIZ