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| Edited By: Neha Rishi |Source: DNA |Updated: Mar 30, 2018, 02:56 AM IST
Tata Motors 7-billion-baht project to produce an “eco” or a car running on hybrid fuel, in Thailand by 2012 has been scrapped.
A company spokesperson confirmed Tata Motors (Thailand) will not participate in the project.
The company may ship the Nano instead.
“We will explore opportunities to expand our portfolio by introducing a relevant passenger car model with appropriate investments for local production in Thailand,” the spokesperson said.
Importing would make the 625cc car a costly proposition — Thailand levies 80% customs and 25% excise duties.
Tata Motors was one of the six carmakers applying for government incentives to manufacture mini passenger cars with at least an annual production capacity of 100,000 units.
According to a news report in Bangkok Post on May 13, Tata Motors plans to introduce the Nano, the world’s cheapest and smallest car, in lieu of an eco car after it scrapped its project in Thailand.
The news report also said Tata Motors failed to meet Thailand’s Board of Investment’s March 31 deadline to submit its eco-car project details and preparations for development. As a result, the investment promotion certificate awarded to Tata Motors 18 months ago was terminated.
The Tata Motors spokesperson did not cite any reasons behind scrapping the project.
But rivals Toyota, Honda, Mitsubishi, and Suzuki have confirmed participation in the eco-car project.
According to Bangkok Post, the excise tax structure, coupled with large investments required, were the reasons why Tata abandoned the plan.
The company was also dissuaded eroded after the Thai government backed lower excise taxes for vehicles powered by different fuels than the eco-car, the report said.
The Thai government offered a 17% excise tax on eco-cars to attract development, but later cut the excise tax on E85-powered vehicles to 22% from 25%.
In addition, the excise tax on hybrid vehicles is only 10%.
Both E85-powered and hybrid vehicles require less investment than eco-cars and have no production volume requirements, while eco-car producers will each be required to make at least 100,000 units per year of production within five years of operation.
