Toyota eyes E85 cars in 2 years

The tax rate of 25 per cent on small E85 vehicles, which is equal to the "ecologically friendly" or eco-car programme, is reasonable since the cost to assemble an eco-car is Bt50,000-Bt100,000 higher due to better fuel efficiency, he said.

Eco-cars, as heavily promoted by the government, are supposed to meet strict fuel economy specifications, running for at least 20 kilometres on one litre.

Vehicles using the blend of 85-per-cent ethanol and 15-per-cent gasoline would consume about 30 per cent more fuel but motorists would save money since ethanol feedstock, mainly molasses and tapioca, can be locally sourced.

Ninnart said the investment needed to make E85 vehicles was also far less than for eco-cars since only certain engines and parts need to be adapted. E85 cars will be highly attractive if the price of E85 fuel is Bt15-Bt17 per litre cheaper than today's petrol, he added.