Mitsubishi joins Thailand's eco-car project, Toyota submits application

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 CO 2 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 CO 2 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.

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[Source: Asia Pulse]

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