Japanese car maker Nissan Motor (Thailand) remains committed to its new investment in the second phase of the government-promoted eco-car scheme even though an exact production time frame has yet to be decided.
Newly appointed president Kazutaka Nambu said eco-car investment was a top priority of the parent company.
Nissan was the first contender for Thailand's first eco-car scheme when it was launched in 2007, drawing investment of 28.8 billion baht.
Kazutaka Nambu president of Nissan Motor (Thailand)
The company introduced its March eco-car in 2010 and the Almera in 2012.
Nissan is also participating in Thailand's second phase launched early last year.
It plans to spend 6.86 billion baht to make 123,000 eco-cars and 2 million auto parts a year at its Bang Na-Trat Road factory run by the local unit.
As of the end of last year, Nissan made 230,000 eco-cars in Thailand, both the March and Almera models combined.
It commanded a market share of 15-16% of Thailand's eco-car segment, which saw 91,342 vehicles sold last year.
Senior vice-president Prapat Choeychom said Nissan as yet had no plans to start the second phase of its eco-car project this year or next, focusing instead on upgrading its production line of existing eco-car models to accommodate the new excise tax rate.
Spending on the production line will run 100-200 million baht.
The two current eco-cars now have carbon dioxide emissions of 120 grammes per kilometre.
Nissan is now improving its eco-cars to be compatible with carbon dioxide emission of below 100 g/km to enjoy the new excise tax rates.
The new excise tax on vehicles, due to take effect early next year, is expected to mark another turning point for the automobile industry, as the new rate will make retail prices of eco-friendly vehicles such as eco-cars and hybrids cheaper and more attractive.
The new tax regime will be based on carbon dioxide emissions, E85 gasohol compatibility and fuel efficiency instead of engine size like under the present tax structure.
The excise tax on vehicles with carbon dioxide emissions below 100 g/km will be cut to 12-14% from 17% for eco-cars.
However, the 10% tax rate for hybrid vehicles will remain unchanged.