Toyota banks on zero duty for 'green' components

"They are concerned with the fuel consumption and environmental friendliness of the vehicle," Wichien explained during yesterday's press launch of the model.

He said each part carried a different import duty, ranging from 20-30 per cent. Toyota has asked the government to eliminate that duty and is confident of approval.

The Camry Hybrid is powered by a 2.4-litre petrol engine and electric motors that reduce average fuel consumption by 30 per cent. It also enjoys tax privileges under the Japan-Thailand Economic Partnership Agreement (Jtepa), as well as those under the Excise Department for environmentally friendly vehicles.

Excise duty will be slashed from 30 per cent to only 10 per cent. Import duty for parts under Jtepa vary in accordance with their category, but they all receive a 5-per-cent reduction each year for four years before the next round of negotiations is held.

The Camry Hybrid HV AVN Navigator goes for Bt1.779 million, HV AVX DVD for Bt1.659 million and HV 6 CD for Bt1.559 million. Compared with previous models with similar options, the HV AVN Navigator is Bt100,000 cheaper, while the HV AVX DVD and the HV 6 CD are Bt90,000 and Bt70,000 cheaper, respectively.

Toyota said these were introductory prices and that they would be adjusted at year-end.

Meanwhile, Toyota Motors Thailand president Kyoichi Tanada said there were no plans to export the Thai-made Camry Hybrid just yet.

"But there will be talks about it with Toyota Motor Corp in the future," he said, adding that there were no plans to expand hybrid technology to other models in Thailand either.

"However, it also depends on the performance of the Camry Hybrid in the Thai market," Tanada added.

Toyota plans to sell 900 Camry Hybrids a month, along with 400 regular models, consisting of one 2.4-litre model and two 2-litre models. Camry sales averaged 400-500 units a month so far this year. Prelaunch orders for the Camry Hybrid amounted to some 1,000 units, with deliveries to commence next week.

Camry covers more than half of Thailand's mid-sized passenger-car market. Thailand is the third country after Japan and the United States to assemble Toyota hybrid vehicles. It is produced at the Gateway plant in Chachoengsao province.