Earlier, the Board of Investment (BoI) and the Excise Department launched a study on an excise tax rate for eco-car manufacturers, in order to promote Thailand as a regional eco-car hub.

A BoI source said the study was now complete and would be proposed to the BoI for approval by the end of the month.

He declined to disclose the new rate but said it would spur Thailand to become a hub for the eco-car market.

After giving a speech on "New Updates on Government Policies and Strategic Plans in Promoting and Enhancing the Competitiveness of the Thai Automotive Industry" at the 9th Annual Thai Automotive 2007 Conference yesterday, Piyabutr said Thailand was now the leader in 1-tonne pickups on the global market. The next milestone is to be the world's leading exporter of environmentally friendly vehicles.

He said bilateral free-trade agreements (FTAs) would increase the Kingdom's economic advantages, including for the automobile industry. After signing the FTA with Australia, Thailand exported 140,000 pickups to that country, up from 50,000 in past years.

The ministry will promote research and development (R&D), in order to attract investment from auto-makers worldwide and turn the local industry's focus from labour-intensive to R&D.

He said the Industry Ministry had created a cooperative project with four Japanese carmakers - Toyota, Nissan, Honda and Denso - to develop human resources in the automotive industry.

For example, Toyota will transfer to local industry its know-how in production systems, globally accepted as the best. At the same time, Honda will join the National Metal and Materials Technology Centre, in order to encourage Thai operators to design moulds and dies to support its plants here.

At the beginning of the year, the ministry approved Bt1.76 billion to build Thailand's first-ever testing centre, in a bid to lift the local auto and auto-parts industry to international standards.

But to complete the centre, it will need to invest another Bt5 billion for an auto testing field, said Thai Industrial Institute secretary-general Pairoj Sanyadechakul.

Chalida Ekvitthayavechnukul

The Nation