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Automakers Heading to Thailand

Two Japanese automakers namely Honda and539,206 units wherein more than 60 percent
Nissan, Japan's second and third largestwere pick-up trucks that is according to
carmakers respectively were reported to beThailand Automotive Institute. Likewise, the
seeking for a license to set up plants invalues of the vehicle exports which are
Thailand. These two automakers will use themostly headed to Australia, the Middle East,
plants in Thailand to build theirand  Europe have also increase by 19 percent.
fuel-efficient cars in support of Thailand's
aim  to  become an eco-car production center.In order to be granted a license, auto
companies must build vehicles with engines of
Thailand is scheduled to release license onno more than 1.3 liters that are able to run
February of next year to an unspecifiedmore than 20 kilometers on a liter of petrol.
number of carmakers according to SatitAside from that, the plant should at least
Chanjanakul, Secretary-General of the Boardbuild 100,000 vehicles annually by the fifth
of Investment. He also added that theyear  of  operation.
Thailand government will offer tax breaks and
lower tariffs on machinery imports to theHonda spokeswoman Yasuko Matsuura in Tokyo
companies.said, "We're considering various options, but
nothing  has  been  decided."
At present there is an increasing demand for
vehicles that are fuel efficient and utilizesThailand is not the only Asian country that
the hybrid technology attributed to the everis hoping to become a vehicle production
increasing gasoline prices as well as thecenter as a matter of fact India's government
increasing awareness to preserve thelast year has cut taxes on hatchbacks in its
environment.desire to become a global base for small
cars.
Two of the world's largest automakers namely
Toyota and General Motors producer of qualityThere are already Japanese automakers that
Saab 900 parts have their manufacturinghave started building factories in India for
plants in Thailand already. They use theseexporting small cars namely Suzuki Motor
manufacturing plants for the production ofCorp,  Nissan,  and  Hyundai  Motor  Co.
pickup trucks. Toyota and General Motors are
planning of expanding their car production toAccording to John Bonnel, a director at the
add to lat year's 241 billion baht worth ofBangkok unit of J.D. Power & Associates the
vehicle  exports.Thai government's plan of making the country
a center for pick-up trucks is not going to
Mr, Satit said, "The government wantsbe easy. But he also said that the country
fuel-efficient cars to be the country'shas a substantial demand for pickup trucks
future main export product after ourand its much easier converting the country to
successes in promoting shipments of pick-upan export-oriented hub. Mr. Bonnel explained
trucks."during a phone interview that the car project
is "starting from scratch in terms of the
Last year Thailand's auto exports hasmarket demand in Thailand. The demand is not
increase by 22 percent from a year earlier tothere and has to be created.



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