Excise tax reduction to spur output

Presenters stand next to a Rolls-Royce car exhibited at the 33rd Thailand International Motor Expo 2016 at Challenger Hall, Impact Muang Thong Thani.

Presenters stand next to a Rolls-Royce car exhibited at the 33rd Thailand International Motor Expo 2016 at Challenger Hall, Impact Muang Thong Thani.

With promising prospects in the pipeline next year, many eco-car makers are expected to start second-phase production in 2017.

Nissan Motor (Thailand), in particular, made a clear statement it plans to launch new eco-car models such as the Note next year, which falls under the second phase.

Sureethip La-Ongthong Chomthongdee, marketing vice-president for Nissan Motor Thailand, said the eco-car market landscape has completely changed given the tax benefits for the second phase.

The excise tax for eco-cars produced in the second phase has been cut to 12-14% from 17% in the first phase.

Thailand embarked on the first phase of the eco-car scheme in 2007, drawing five manufacturers: Nissan, Honda, Mitsubishi, Suzuki and Toyota.

The government in late 2013 launched the second phase, drawing 10 car makers including the five existing ones to officially apply. Both phases carry Board of Investment privileges.

The five newcomers are Mazda, Ford, General Motors, SAIC Motor-CP and Volkswagen. Mazda was the first player to produce second-phase eco-cars, while General Motors withdrew in 2015.

As of October, Thailand has produced 1.644 million eco-cars. Of those, 934,533 units were for shipment, while 709,687 were sold locally.

Nissan had the most eco-car sales in the country at 258,727 units, while Mitsubishi and Toyota had 133,005 and 129,985 units, respectively.

Nissan plans to spend 6.86 billion baht to make 123,000 eco-cars and 2 million auto parts a year at its Bang Na-Trat Road factory run by Nissan Thailand.

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However, Ms Sureethip said Nissan would still make the March and Almera eco-cars under the first phase to serve local and overseas markets.

“Nissan has been an eco-car pioneer since 2010 and it is confident eco-cars will remain a key segment for Thai buyers of passenger cars because they are affordable,” she said.

The Federation of Thai Industries reported eco-car production rose 2.3% to 297,979 units over the first 10 months this year in line with a rise in overall output for the domestic market, which gained 25.4% to 97,534 vehicles. Output for exports in the same period fell by 6.14% to 200,445 vehicles.

Wallop Treererkngam, newly appointed executive director for sales and marketing of Suzuki Motor (Thailand), said the local eco-car market is more active, with eco-cars making up 39.8% of the market the first 10 months this year, up from 35.7% the same period last year.

He said Suzuki remains committed to assembling eco-cars in the second phase, although the parent firm has yet to give any directions for short-term production. Suzuki has three eco-cars models — the Swift, Celerio and Ciaz — serving both local and overseas markets, but produces them only in Thailand.

The company plans to invest 8.43 billion baht to make parts and assemble 100,000 vehicles a year under the second phase.

In a related development, Inter-Media Consultant Co will put on the 33rd Thailand International Motor Expo 2016 from Dec 1-12 at Impact Muang Thong Thani. The organiser targets bookings of 50,000 vehicles and 4,000 big bikes during the expo. Some 1.5 million visitors are expected.

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Source: Bangkokpost