+ 5 years: Thailand as the 'eco-hub' of Asia - Ajarn Forum

Pinky · 2nd June 2005, 17:42

Do you think/believe that in 5 years from now Thailand could have redeveloped itself as the 'eco-hub' of Asia?

You never know, anything is possible:

Quote:

Thailand aims to become Eco-Car production hub
Copyright 2005 Deutsche Presse-Agentur; Deutsche Presse-Agentur; June 2, 2005 Thursday

This month the Thai government is expected to announce its plans for becoming a regional production hub for "EcoCars," as part of efforts to curb oil imports and clinch the country's status as the emerging "Detroit of Asia."

The policy, more than a year in the making, will include changes to existing tax regimes, new regulations promoting the use of gasohol at petrol stations, alterations at petroleum refineries and the expansion of an ethanol production industry using agricultural products such as sugarcane and cassava.

For starters, the Industry Ministry will announce "EcoCar" specifications for international automobile makers to meet in order to qualify for tax incentives, including the government's Board of Investment (BOI) promotional privileges that provide waivers on imports of machinery and tax holidays.

According to Chakramon Pasukwanit, permanent secretary of the industry ministry, the specifications are likely to include a small body size, about three metres long by 1.6 metres wide, fuel efficiency of five litres per 100 kilometres and a K20 engine, capable of using gasohol with 20 per cent ethanol content.

The government wants the EcoCar sales price to be between 350,000 to 400,000 baht (8,750 to 10,000 dollars), making it the cheapest option on the domestic market.

Besides receiving BOI privileges, EcoCar manufacturers would also enjoy a 10 per cent reduction in excise tax on passenger cars, which currently stands at 30 per cent of all vehicles factory price, said Chakramon.

So far Toyota, Honda, Suzuki and Ford have all expressed tentative interest in the eco-scheme.

The new "EcoCar" direction reflects Thailand's growing concerns about dependency on imported oil - the country's trade deficit has ballooned to 3.2 billion dollars in the first four months of this year - and an acknowledgement of the need to refocus its local automobile industry if it wishes to remain a production hub in an increasing liberalized trade environment.

"I think the automotive policy we've been following for the past 30 years is gradually changing course for the better towards a more liberal policy," said Chakramon.

Thailand, through prohibitive tariffs on imported vehicles, has encouraged a local automobile assembly and parts-production industry that has drawn the world's major automobile manufacturers to its shores and earned it the nickname of the "Detroit of Asia."

But pressure to liberalize trade and a flurry of bilateral free trade agreements is expected to undermine the old tariff structure within the next five or six years.

This shift in taxes is likely to make European car-makers such as Dailmer-Chrysler and BMW think twice about continuing their production factories in Thailand.

"Luxury cars should be produced where they make sense. They came to Thailand in the first place because of the huge import tariff, that's all," said Chakramon. "We would prefer to produce pickups and EcoCars."

Thailand has already secured its place as Asia's largest manfacturer of one-ton pickup trucks.

Last year, a host of manufacturers including Toyota, Nissan, Isuzu, Mitsubishi, Mazda, Ford - produced about 600,000 pickups in Thailand, of which 368,371 were sold domestically and the remainder were exported.

Now, Thailand is hoping to duplicate its success in pickup truck production with small EcoCars.

Although the automotive giants are still waiting for the specifics, initial reactions to the EcoCar policy have been positive.

"We believe the proposed EcoCar as a second national product champion will further boost Thailand's goal to become Detroit of Asia," said John Felice, president of Ford Thailand.

Ford, which sold more than 1 million ethanol vehicles last year worldwide, is studying plans to launch a new generation small car to fit the Thai proposal and for exports to the Association of Southeast Asian Nations (ASEAN).

Honda and Toyota have also expressed interest in the EcoCar project.

Producers have cautioned that Thailand's EcoCar ambitions will hinge on the government setting specifications this month that make the car attractive to buyers, in Thailand and the region, and guarantees of tax incentives for manufacturers.

"In order to promote a second national product champion in the EcoCar, there needs to be provision of attractive incentives and tax benefits to attract automakers to invest in new facilities and make Thailand the regional production and export hub for small cars," said Felice.

My quote of the day:

Quote:

"We would prefer to produce pickups and EcoCars."

Marmite the Dog · 2nd June 2005, 20:56

Typical Thais - all talk and no trousers

PeaceBlondie · 2nd June 2005, 21:17

Have you been to places like Japan and China, where they're serious about teensy minicars and actually BUY them instead of just manufacture them? These microcars are like the Diahatsu Mira Mint, which appears to have fallen out of favor just before it started to become vaguely popular. Thai's don't buy teensy cars. Have you noticed matayom students now that are six feet tall? You can't even put Pornporn in the back seat anymore; she doesn't fit.

The Detroit of Asia? Thailand doesn't even have facilities to test parts - the Japanese technicians do that in Japan with Japanese instruments. Thailand doesn't produce high tech; it produces cheap labor, taught to regurgitate one-syllable answers in rote in classes of 50 in classrooms where the fans are noisy and the chalkboard is cracked. But Thailand has no monopoly on cheap labor; look at China. Look at Indonesia, India, etc.

Every Ministry apparently has to come up with an idea of the month, like the Minister of Education's announcement to have 10,000 farang teachers in Thailand, rotating every 90 days, hopefully before the teachers are involved in unplanned pregnancies.

Snaff · 2nd June 2005, 21:19

Eco-car production hub for export.

dirty dog · 2nd June 2005, 21:23

Quote:

Originally Posted by PeaceBlondie

rotating every 90 days, hopefully before the teachers are involved in unplanned pregnancies.

maybe thats why so many farang teachers are pillow biters, is there a bit on the form for application asking your sexual preference?

PeaceBlondie · 2nd June 2005, 21:41

Snaff, you're right that the minister's plan includes exporting these pocket-size cars that make a Mini Cooper look large, but read various parts of the article again, such as this one: "The government wants the EcoCar sales price to be between 350,000 to 400,000 baht (8,750 to 10,000 dollars), making it the cheapest option on the domestic market." And he talked about petrol stations in Thailand, about Thailand's increasing demand for import oil, etc.

The Prime Minister's on an energy-saving kick this week, so each cabinet minister is making absurd statements about saving energy.

Pinky · 2nd June 2005, 22:09

PB: Agreed - it's total bollocks, but it's good entertainment value

Theodor Geisel · 2nd June 2005, 23:25

Eco-car like Eco-tourism. Thais only thought Eco-tourism was a good idea because they thought it stood for economy and belived there was money to be made.

Thais have hacked away the pristine forest on Koh Chang as part of there Eco-tourism drive.

Thai ministers must feel obliged to dream this up to justify there jobs.

Covertjay · 3rd June 2005, 11:45

Quote:

Every Ministry apparently has to come up with an idea of the month, like the Minister of Education's announcement to have 10,000 farang teachers in Thailand, rotating every 90 days, hopefully before the teachers are involved in unplanned pregnancies.

Cabinet level half baked idea of the week. They rotate the Thais at my school every few years. So they get 'competent' at one job and are promptly moved to the next?? I was about to as another 'why' question so I'll just stop right there.

Added after 2 minutes:

Quote:

Thais have hacked away the pristine forest on Koh Chang as part of there Eco-tourism drive.

Saw that sat photo in the paper today. Outrageous isn't it?? Haven't they started knocking down unlawful bungalows on some islands recently? Saw it on Thai tv.

diaw · 3rd June 2005, 12:38

I actually think that the idea is very good - despite all comments to the contrary.

Dr.T Quick-Fix (despite his general nonsense) actually has some good ideas eg. the cheap computer idea - around which he galvanises manufacturer's minds. Thailand, with the assistance of a few large Japanese manufacturers could very well succeed with the idea of producing 'Eco-cars'...

Thailand has already begun gearing up to providing Automotive Engineering training with a view to supporting such ventures... but, bear in mind, Thailand cannot develop this technology on its own - it has to be in partnership with a good source of brains & expertise.

In other words, it will become the manufacturer of this car - not the designer

diaw...

Theodor Geisel · 3rd June 2005, 15:24

I haven't seen any pictures of Koh Chang Covert, but i was there around Christmas and somebody should be shot for what has happened in the last 2 years.

The entire perimeter of the island seems to be under construction. The first time i was there was in 2002 and it was paradise. The forest was protected and it was part of a valuable marine park. It seems to be open season for anyone with an axe these days.

Yes! On paper eco-cars sound great. Let's remember the drive to clean up the buses that belch black clouds. They are still there and no doubt adding more crap to the air than 500 cars bought in the last 5 years.