Japan's Honda is calling for measures and incentives to localise assembly of electric motorcycles in Thailand, saying the current promotion package is limited to production of finished cars and electric parts.
According to Suchart Arunsaengroj, vice-president of AP Honda, the local distributor of Honda motorcycles, the production cost of electrified motorbikes remains high for manufacturers and they must reduce their costs for each electrified model.
"If the country wants electric motorcycles to be widespread, the privileges and incentives are still very necessary," he said.
Mr Suchart said AP Honda understands that the requirements and conditions for electric motorbikes are too complex to launch new privileges and incentives, unlike with electric cars.
One proposal is a new tax structure centred on an excise tax for motorcycles, recalibrated from engine size (cubic centimetres) to CO2 emissions, but the Excise Department has yet to make a decision on the matter.
The excise tax for cars, based on emissions, has been in effect since early 2016.
Mr Suchart said AP Honda is a member of the Thai Motorcycle Enterprise Association and the agency, together with the Thai Automotive Industry Association, is keeping in touch with government officials to follow developments on the measures for motorcycle manufacturers.
Honda has localised its assembly of hybrid motorcycles at a plant in Bangkok's Lat Krabang. Yesterday the company announced the Southeast Asian debut of the PCX Hybrid in Thailand.
The premium automatic scooter previously was showcased in Thailand and Indonesia.
Tokyo-based Honda Motor Co calls the PCX Hybrid the world's first two-wheeled hybrid powered by a 48-volt lithium-ion battery. In October, the company showcased the PCX Hybrid and the PCX Electric at the 45th Tokyo Motor Show. The two models will hit the market throughout 2018.
Mr Suchart said the hybrid version will be launched for commercial purposes from August onward with a retail price below 120,000 baht.
The batteries for hybrid motorcycles will be imported from Japan.
"AP Honda commits to its three-year business plan for 2017-19 to introduce the first electric motorcycles in the Thai market," Mr Suchart said. "The PCX Electric will be introduced locally in late 2018."
The PCX family has monthly sales of 9,000 units, and the hybrid version is expected to see 2,000 units sold yearly.
"The market demand for electric motorcycles remains unclear for Honda, and it has to wait and see for a while before make any business plan, so the launch of the PCX Hybrid is just a market testing," Mr Suchart said.
chairman Arnop Phornprapha, president Yoichi Mizutani, and vice-president Suchart Arunsaengroj with other AP Honda's high-ranking executives.
Vice-president Suchart Arunsaengroj