Could Thailand be an eco-Detroit?
Eco-cars could be the engine that drives Thailand to its goal of becoming the "Detroit of Asia" by 2010.
The country's automobile assemblers are waiting to see what incentives the government will offer for the production of eco-cars before they ramp up spending on production plants.
In 2003, Thailand announced it would become the automobile-assembly hub of Asia. It set two milestones, the first having been reached last month, when the millionth vehicle of the year rolled off the assembly line. Thailand is now the world's 14th-largest motor-vehicle producer.Back in 2003, the country relied on pickups. Today the Kingdom is the second-biggest producer of these vehicles after the United States. The second milestone is to produce more than 1.8 million automobiles a year in 2010 and export 800,000. If that is achieved, Thailand will be the world's 10th-largest vehicle producer and sixth-largest exporter. With four years to go, it is hoped eco-cars will be the new industry star, because the pickup market faces limited growth. Last month the Board of Investment (BoI) announced conditions for the production of eco-cars. Assemblers must meet Euro-4 emission standards and put out 100,000 units annually within five years. Assemblers felt these conditions were impractical. The BoI wants automobile companies to submit investment plans this month, with their final proposals by next March. Industry Minister Kosit Panpiemras was asked about the government's incentive plans last week. He said there would be alternatives for auto-makers and that they could propose investment plans that did not meet BoI conditions. If these plans are "interesting", he will "listen" and consider granting incentives. Reading between the lines, the eco-car project could help the Detroit of Asia plan meet its targets. "Thailand welcomes auto investors to expand investment in Thailand for eco-cars and other automobiles and believes the auto industry continues to grow and will meet the target of 1.8 million units a year in the next four years," Kosit said. Ford Thailand will consider eco-cars, but only after consultation with all manufacturers. Some assemblers were "troubled" by a lack of notice given by the BoI before making its announcement. "The eco-car is, in fact, a very good idea for the Thai market, which requires small, fuel-efficient cars with a cheap price tag. But the government must consider which way it wants to go. Small cars that provide high fuel efficiency need expensive production technology. Another option is to consider alternative fuels which are more feasible in a country like Thailand, where there is a lot of agriculture," said Ford Thailand president Tom Brewer. The BoI will consider different opinions from car manufacturers and choose ones providing the best investment and benefits for the country. A model will then be devised for eco-car conditions. Brewer added that foreign markets required study before going ahead with the eco-car. There are no countries demanding the large numbers of mini-cars that would be needed to make production in Thailand viable. Chalida Ekvitthayavechnukul, The Nation
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