Add Mitsubishi to the list of carmakers going to Thailand to make green cars. Mitsubishi will spend 20 billion yen (US$179 million) to produce some 100,000 cars cars a year with small engines, high MPG and low CO2 emissions (this means engines that are 1.3 liters or smaller, vehicles that get 20km per liter (56.6 MPG) and emit less than 192 grams of CO2 per mile (120 g/km)). We told you Toyota intended to submit the application November 30th and now, we have news Toyota has submitted their application as well to join the Thai eco-car program and will invest 17 billion yen.
The Thai government program involves giving tax breaks (a 50 percent cut in the excise tax, no income tax for 8 years and machinery imports duty free) to car makers to build eco-cars in their country, if they invest a significant amount in a plant. Thus far, the program has attracted Toyota, Honda, Suzuki, Nissan and even Ford is rumored to join the program. Honda has already invested 6,700 million baht (about $220 million US) in Thailand auto production facilities. Suzuki and Nissan are expected to invest 9,500 million baht ($313 million) and 5,550 million ($183 million). Thailand has also invited smaller car companies like Tata to make the air car in Thailand for a paltry $39M investment.
I guess this proves, finally, that big corporations like giant tax breaks.
- Low Taxes for Eco-Car Makers in Thailand
- Toyota likes free money, signs on to Thailand's eco-car plan
- Suzuki and Nissan benefit from Thailand's low taxes for building cleaner cars