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Wed, October 4, 2006 : Last updated 21:36 pm (Thai local time)



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Home > Business > Govt urged to revive Eco-Car





Govt urged to revive Eco-Car

The automotive industry has suggested the new government of Prime Minister Surayud Chulanont revive the old "Eco-Car" project, under which the previous government had proposed to assist auto-makers develop small, fuel-efficient vehicles as a way to help the Kingdom become the world's leading car exporter.

One goal of the Thaksin government was to increase Thailand's annual auto production to 2 million units by 2010. Diversifying the type of autos manufactured in the country by supporting the production of "economy" vehicles was something the government proposed but never got around to considering seriously.

Last year, Thailand was ranked the 14th-biggest auto-maker by volume and the second biggest by exports, which were valued at US$7.75 billion (Bt291 billion). The country produced 1.25 million units last year, most of which were pickups.

Atchaka Brimble, secretary-general of the Office of Industrial Economics, told the seminar "The Development of Thai Core Industries in the Future" yesterday the Kingdom should seek to be a production base of vehicles other than pickups.

"Thailand's automotive industry still has room for growth if the government will support it," she said, adding that the industry wanted the government to support production of different types of vehicles, such as compact cars.

Atchaka said the country was now a production base for the automotive industry, especially for pickups. However, the market for pickups was expected to reach the saturation point soon. She said if the government wanted the country to achieve the Thaksin administration's target of producing 2 million units per year, it should enhance the production of new types of vehicles.

Atchaka suggested the government support the industry in developing economy cars by offering tax privileges and manpower and developing testing facilities.

Watcharapong Thongrung The Nation







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