Thailand’s Eco-Cars – A Good Deal for the Environment, the Economy & the Driver

Thailand’s Eco-Cars
Thailand’s Eco-Cars – A Good Deal for the Environment, the Economy & the Driver

The Thai government began the first phase of the eco-car program 10 years ago in July 2007, with stage two commencing in 2013

The Nissan March was the first eco car in Thailand and launched in 2010. In July 2016 the company celebrated the 500,000th eco-car from the assembly line, with exports to 13 countries around the world. About Thailand Eco-Cars More and more people are buying Eco cars. Many will buy these cars because they are trying to save the environment, but there are a many more rewards to buying an ECO. Eco-cars are also at the cutting edge of car design and engineering. They’re cute, stylish and often designed for a more friendly commute amongst traffic and when parking spaces at a premium. The eco-car movement has placed Thailand at the forefront of vehicle manufacturing in South-East Asia and across the world; but what is the ‘Eco-Car’ Program in Thailand? The policy aims to produce energy-saving and environmentally friendly cars. Or, as we now know them, “Eco Cars”.   Phase I The first phase defined eco-cars as vehicles powered by gasoline engines of 1.3 litres or below, or diesel engines of 1.4 litres or below, capable of achieving fuel consumption of 5 litres per 100 kilometres. They also had to conform to Euro IV standards or emit less than 120 grams of CO2 per kilometre. Manufacturers had to build 100,000 units a year by the fifth year of operation. Vehicles considered eco-cars in the first phase were eligible for a lower sales tax rate of 17%, almost half the amount previously paid for a vehicle under 2000 cc.

Honda, Toyota, Nissan, Mitsubishi, and Suzuki applied for the first phase of the project and received exemptions for tax and import duty for machinery and equipment, and as much as a 90% reduction in import duties for raw materials and finished parts. The automakers earmarked at least 50% of their eco-car production for export. Phase II The minimum capacity for eco-car models approved in the second phase is 100,000 units a year within five years of production, while excise duty on an eco-car was to be levied at 14% and those compatible with Euro V emission standards/E85 could enjoy a 12% rate. Models must emit no more than 100 grams of carbon dioxide per kilometre, down from 120 grams per kilometre. Fuel efficiency must be 4.3 litres per 100 km, up from 5 litres per km in the first phase. Engine displacement should not exceed 1.3 litres for gasoline models and 1.5 litres for diesel models.