Toyota Motor Thailand Co has reiterated no compromise is possible in an argument over whether there should be restrictions on the body size of a proposed "eco car" the government has proposed be built by commercial carmakers.
Toyota Motor Thailand Co has reiterated no compromise is possible in an argument over whether there should be restrictions on the body size of a proposed "eco car" the government has proposed be built by commercial carmakers.
Toyota president Ryoichi Sasaki said yesterday he supported the government policy to promote new, environmentally friendly small cars that are fuel efficient, but said current proposals on size restrictions were impractical.
Industry Minister Suriya Jungrungreangkit has pledged to review the existing specifications opposed by Toyota.
Mr Suriya's predecessor, Watana Muangsook, had approved a proposal that would limit the eco car to dimensions under 3.6 metres in length and 1.6 metres wide.
Mr Watana pushed hard for the plan, and even flew to Japan at one point, to lobby Japanese car manufacturers in their own offices on details of the plan he took to the Cabinet for approval. The project was shelved after Mr Suriya replaced Mr Watana in the Aug 2 cabinet reshuffle.
Mr Sasaki said the eco car would not just be made for domestic sale, and the government should consider whether the cars would be competitive or exportable overseas.
Most important is the customers, he said, be it at home or abroad. If the government restricted the body size of an eco car, it would not only limit the freedom of the auto makers to develop their cars but would also distort the market.
"We want flexibility in designing the vehicles because varying products can help fuel competition in the automotive market," said Mr Sasaki.
He also emphasised that Toyota strongly opposed any special tax privileges for the makers of an eco car, because it would distort the development of the local automotive industry, and be unfair to other vehicle segments.
The government wanted a low-cost eco car, so that the auto makers could use Thailand for a production and export base.
An industry source said the government favoured reducing the excise tax from the standard 30 percent for cars with an engine of less than 2.0 litres to just 10 percent for the eco car. Auto makers feared a popular eco car would cut into sales of sub compact cars and pickup trucks.
Mr Suriya recently ordered the Thailand Automotive Institute to review the eco car scheme, especially the size and tax reduction.
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Source: Knight Ridder/Tribune Business News
