Ten car makers including five existing eco-car manufacturers have officially applied for the second phase of the government's eco-car scheme, with total expected investment of 139 billion baht, says the Board of Investment (BoI).
The 10 projects are set to produce 1.58 million units of eco-cars with around 100 billion higher than the combined outlay from the five eco-car manufacturers in the first phase.
The existing five manufacturers are prepared to invest 86.8 billion baht for the production of 753,000 eco-cars, while the five newcomers are prepared to spend 52 billion to roll out 828,000 units.
"The second phase attracted more interest than we expected. This reflects confidence in the capability of Thailand as a production base for global automakers," said BoI secretary-general Udom Wongviwatchai.
Investments in the eco-car scheme also benefit supporting industries in Thailand, especially auto parts manufacturing, he added.
Mr Udom said the BoI will look at the details of each proposal to ensure they comply with eco-car scheme requirements. If they qualify, the projects will be submitted to the BoI's main board once a new one is formed.
"The eco-car project will be a key driver supporting Thailand's goal to produce 3 million cars by 2017," said Mr Udom.
Although Mr Udom declined to reveal the names of the five newcomers, GM Thailand confirmed to Bangkok Post it submitted an eco-car proposal.
"Investor decisions are generally based on long-term vision and opportunities. GM’s application for the second phase of the eco-car scheme reaffirms our commitment to invest in Thailand and make Rayong a hub for exports," said new GM managing director Marcos Purty.
US-based Ford Motor Company, Japan's Mazda, Germany's Volkswagen and SAIC Motor-CP also announced their interest in joining the government's eco-car scheme.
Surapong Paisitpatanapong, spokesman for the Automotive Industry Club of the Federation of Thai Industries, said it was a good sign 10 automakers want to join the eco-car project.
Eco-cars account for 14% of Thailand's total vehicle exports at present.
As of February, five car makers produced 800,000 eco-cars — 20,000 units are for domestic sale and the rest are for exports.
Kasikorn Research Center forecasts the second phase eco-car scheme could generate annual production of at least 500,000 vehicles, as the BoI requires automakers produce 100,000 units a year of the model by the fourth year of operation.
Because of this rule, some car manufacturers might withdraw from the scheme in later years or some projects might not meet the BoI’s requirements, said the research house.