Volkswagen AG, Europe's largest car maker, has applied to set up its first plant in Thailand to help narrow the gap with Toyota Motor Corp in Southeast Asia, people familiar with the matter said.
The company, based in Wolfsburg, Germany, is seeking to participate in a government scheme offering tax exemptions for car makers investing at least 6.5 billion baht in local manufacturing, said the people, who asked not to be identified because a final decision has not been made.
Annual production must reach at least 100,000 cars in the fourth year after starting operations, and manufacturing must begin by 2019, in order to receive the incentives. The Ministry of Industry scheme includes vehicle assembly, components and engine production. Car makers had until March 31 to apply, according to a ministry statement from October.
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