Thailand gears up for green camrys

Despite requiring an investment of just Bt90 million, Toyota's decision to assemble the Camry Hybrid in Thailand starting next year may be the beginning of a new era in the Kingdom's automobile industry.

The current global energy crisis has resulted in consumers calling for more fuel-efficient vehicles and automobiles capable of running on alternative fuels. In Thailand, where fuel prices have broken the Bt40-per-litre mark, motorists are increasingly switching to ethanol-capable vehicles.

Meanwhile, a large number of car owners are also modifying their vehicles for use with alternative fuels such as liquefied petroleum gas (LPG) or compressed natural gas (CNG).

Over the years, Thailand has grown into a major automobile  manufacturer, being the world production centre for 1-tonne pickups. Although many luxury cars are also assembled here, most are put together from completely knocked-down kits (CKD), which means there is not much technology transfer.

The decision to assemble the Camry Hybrid in the Kingdom may prove to be a good start for the country in evolving from a low-tech assembly centre to a high-tech production base.

Adviser to the industry minister Sorayut Phettakul said, "During the first stage, the hybrid system has to be imported, but in the future we want it to be made in Thailand."

Surayut said the Industry Ministry is trying to convince auto-makers to produce hybrid vehicles in Thailand by giving them special privileges.

"For Thailand, we want Toyota to produce a smaller hybrid car apart from the Camry," he said. "We want Toyota to put the hybrid powertrain of the Prius into a smaller production car such as the Corolla Altis."

This would make the technology more accessible to the car buyers in the country and increase economy of scale.

"We have talked to the Board of Investment about offering privileges to companies that produce hybrid vehicles in Thailand, and if we get an early sign, we can start working out investment privileges," Sorayut said. He said Industry Minister Suwit Khunkitti has been talking to the Customs Department about lowering import duty for hybrid systems.

Currently, the excise duty for hybrid vehicles is only 10 per cent, compared with 30 per cent and 35 per cent for regular vehicles with engine capacity below 2 litres and 2.5 litres, respectively.

The Camry and other Toyota passenger cars already enjoy a 5-per-cent excise-duty reduction due to their compatibility with E20-gasohol.

Sorayut said Thailand was unable to offer a sizeable subsidy like Australia, which will give Toyota US$37 million (Bt1.22 billion) for research and development of hybrid vehicles in order to cut emissions blamed for global warming and to revive its ailing auto industry.

"But we can offer indirect help in the form of lower import duty and investment privileges," he said.

Toyota Motor Thailand president Mitsuhiro Sonoda said the company plans to produce at least 9,000 units of the Camry Hybrid per year and production could be raised if there is more demand.

Toyota executives refused to state a ballpark figure for the Thai-made Camry Hybrid, but it is expected to be lower than Bt2 million. Price of the Camry starts at Bt1.19 million for the base 2.0 E model, while the top 2.4-litre model costs Bt1.67 million.

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