Thailand’s Board of Investment has approved investments worth a total of 52.7 billion baht (RM5.23 billion) for Phase 2 of the country’s Eco Car programme, according to a report by just-auto.
That’s almost 24 billion baht (RM2.41 billion) up on the combined investment in Phase 1, which was launched in 2007 and involved five carmakers, all Japanese. Phase 1 Eco Cars include Hondas Brio and Brio Amaze, Mitsubishis Mirage and Attrage, Nissans Almera and March, the Toyota Yaris and the Suzuki Swift, all of which have 1.2 litre petrol engines in Thailand.
This time, just-auto reports that six carmakers are in on the party, including newcomers Ford and General Motors. Ford has set aside 18.2 billion baht (RM1.83 billion) to build a new engine plant, as well as a facility capable of producing 180,000 Eco Cars per year.
GM, however, has pledged 13.1 billion baht (RM1.32 billion) for a 158,000-unit annual capacity plant and a related engine plant, while Nissan and Toyota plan to invest 6.7 billion (RM674 million) and 1.9 billion baht (RM191 million) respectively to up their capacities – Nissan by an extra 123,000 units and Toyota to 160,000 units per year.
The carmaker with the largest Eco Car capacity will be Mitsubishi. The carmaker has set aside an additional 4.9 billion baht (RM493 million) to lift its total Eco Car capacity to 233,000 units per year, bringing its total Eco Car investment to 7.7 billion baht (RM774 million).
The sixth carmaker in Eco Car Phase 2 is not mentioned, but Volkswagen has been trying hard for some time to get its foot on the ladder, applying earlier this year to set up a plant near the port of Bangkok. Could the German giant be lucky number six?
After all the investments have been completed, Thailand’s entire Eco Car production capacity will leap to 1.58 million units per year. Total investment is forecasted to surpass 90 billion baht (RM9.05 billion), not including those expected to be made in the parts supply chain sector, according to just-auto.
The requirements in Phase 2 of Thailand’s Eco Car programme include (for the vehicle) a fuel economy under 4.3 litres per 100 km, CO2 emissions under 100 grams per km, engines displacing 1.3 litres and under (petrol) or 1.5 litres and under (diesel), along with Euro 5, R94 and R95 compliance.
Throw in a minimum investment of 6.5 billion baht (RM653 million) and a minimum production of 100,000 units per year by the fourth year of operation, and the excise duty incentive given is 14% (normally 30%); dropping to 12% if the engine is E85-compatible.
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inb4 TDM father of Thai automobile industry!!!
Still remember the objective of Malaysia NAP2014: Becoming regional hub of EEV ???
It is ALL bullshit! “Hub of EEV” is just excuse, ultimate objective is Protect Government, Proton and its Cronies.
After the NAP, any foreign investment coming in? Any job created for new models? Any EEV exported?
We only see
1)High Tax on Hybrids
2)Fuel price hike
3)GST implemented
4)High Tax on foreign cars remained.
I suspect the current NAP CKD EEV tax-break is to reward Honda for letting Proton rebadge Honda Accord to Proton Perdana (for govt. only). Too bad, Honda isn’t able to fully utilize this opportunity to churn out the latest Honda City/Jazz i-DCD Hybrid due to recall issues. On the other hand, Mercedes-Benz is reaping all the advantage at the moment with S400 Hybrid and E300 Bluetec Hybrid (rumored it is going to be the cheapest E-class, yet with E400 spec, with 100+ bookings already made so far at CCB PJ). Heck, even the snail like Tan Chong Motor is bringing in CKD facelift Nissan Serena S-Hybrid soon.
Bad move on from the G.
It started quite well in 2010 when they gave exemption to all hybrid. We can see all hybrid models flooding showrooms including Honda Insight, Jazz hybrid, civic hybrid, Prius, Prius C, Lexus CT200h, Audi, Merc, BMs, everybody wanna join d party.
Sales figure going up like nobody’s business. Showing that Malaysian were quite well verse with the technology, and accepted it well. People start converting to hybrid cars. The technology itself quite robust.
However, they announce a call off with the tax exemption just 3 years later. By then, only Jazz is locally assemble. And that was IMA tech, not the latest one. They technology transfer is still in infant stages. Most disappointing, those took 9 years repayment not even break even on the installment. Those model suddenly lost sales. Models like Insight, Civic hybrid, Ct200h, no longer on sales, making them a niche model which will depreciate value in no time. few years from now, even d battery will be a ‘rare parts’.
The G have to at least support the program for at least 8 to 10 years. Let the consumer understand the tech. Let the local source matured. Let the technology really ‘transfer’ here. Let the foremen able to skilfully handle the maintenance. Let the initial buyers fully paid their hybrid cars and tell good stories about it.
Now the Thais reaping all the benefit. Its too late.
1) No tax on hybrids, if built locally.
The problem is that the Malaysian government is extremely fickle minded. Car companies prefer to work in Thailand, despite the political situation in Thailand they think Thailand is more predictable and stable! The useless Malaysian government on the other hand only gives the tax exemptions until end of next year. They may extend it, but they’ll probably say so in 2016… car manufacturers need to plan ahead though, at least a year.
This nonsense doesn’t really protect Proton, or anyone, it’s just showing the incompetence of the government.
hehehehehe…..Tengok aje laaaa….
Our neighbours are moving into a high income nation, while our policy makers only said “we need to be a high income nation” BUT what are the mechanism to achieve that?
O&G industry is 1….. next?
Sigh.
Where is our EEV plan now? How is the CKD hybrid incentives after 2 years? Why are we being managed by these imbeciles?
Look at Thailand!
500 millions = R&D for single model? (Iriz) claim by P1.
RM643 million = Throw in a minimum investment of 6.5 billion baht (RM643 million) and a minimum production of 100,000 units per year.
P1 macai when you will wake-up, all the money gone to the cronies pocket. P1 are fooling the Rakyat.
No wonder P1 never bankrupt, suka-suka ask some more from from Gov.
No sales, never-mind ask more from R&D.
Read before u comment…. RM643 million (6.5billion Baht) is to open MANUFACTURING LINES over there…. no developing a car from scratch… duh…. go and ask any car maker how much they spend to develop a car from scratch… stupid!
u made a comment now sure will get many dislike…all those umw/p2 salesman werent working coz of no sales instead of make an effort ..they hang around in pt ..bashing P1!!
EV,EEV incentive announce on Yr 2013.
only 2 years incentive.
Nobody will set up a business and factory for 2 years.
Obviously, force foreign investor need to use local owned factory to assembly. Haicom!
Imagine u are foreign brand. u will not come to Malaysia, definitely go to Thailand or indonesia.
Thailand – long term policy. established supply chain for automotive part.
Indonesia – Strong local demand. attractive labour cost.
Malaysia – Foreign labour same cost as local. Unstable policy, Cronism, less established automotive supply chain.
Sam Loo..
All your Toyota will be assembled in thailand soon.
Now Toyota Avanza in Malaysia is assembly in Indonesia.Some Toyota is start in Indonesia but like Hilux 3.0G,Toyota Corolla Altis is in Thailand.If Toyota see Indonesia can make same or better quality and quantity maybe will make more car in Indonesia.Some important car like Prius is made in Japan because technology.Malaysia?Barang Naik,GST,High labour cost people do the job like wait time for back to home…When driving some kick kock sound and Vios engine mounting is issue in current Vios because made in Shah Alam…
Investments go to where it is welcomed. Our loss is Thailand’s gain.
Malaysia, not only loss the market.
but also loss
1. Job opportunity.
2. Higher technology
3. Export/import balancing.
4. Expert/professional
5. Trust of investor and citizen of malaysian to G.
Therefore, to gain back $, various tax, toll, tenaga cost, increased…..
Who buy the bill?
Not Barang Naik buy the bill.
All malaysian.
Syabas Beribu-ribu tahniah kepada Dr M selaku bapa industri kereta Thailand!!!
Ha..u r rite!
Cheap cars come here…. In golok
THAI: 12% ~ 14% of Excise Duty
MSIA: 75% (min) onwards of Excise Duty, and this is yet transparent to breakdown the taxes details.
We, end consumers have the right to know HOW MUCH tax we have paid for the goods purchased.
Eg:
Honda Jazz 1.5
Selling Price: 35,000.00
Excise Duty (75%): 26,250.00
Sales Tax (10%):3,500.00
CKD Duty (10%): 3,500.00
Insurans:
xxx
xxx
xxx
The car price include a huge duty/tax component and poor car buyers have to pay interest on it too. Ya, you pay interest on the tax. Double whammy.
So, in order not to be a slave to the auto and banking industry go and buy the cheapest car possible. LoL.
Malaysia under umno bn corupted government no need foreigh investment what they can do is by making the rakyat 1Malaysia pay tax on everthing sold in malaysia, the only way lousy government can do.
Vote for BN….vote for Thailand’s prosperity.
Only 52 billion baht. Our Proton initially plan to invest RM3.8 billion. Since the demand for Iriz is very good, the investment amount will be increased to RM8.3 bil.
Seriously we gave this away without a fight. Thanks all these protections from govt. It’s not only the capital investment but also jobs creation, local parts supply, R&D facilities, logistic services- the WHOLE ecology system in car manufacturing industry. Can P-1 a company by itself compensate that?
potong didahulukan, janji dicapati, makan roti, sapu malasia sapu malasia….
Yeah.. Even with Thailand’s political instability, carmakers are still going in to invest due to the favorable T&C imposed by the government. Thailand is on course to become the Detroit of Asia in the near future.
Meanwhile in Malaysia… As long as our existing NAP is still around.. And also protectionism to Proton.. Bolehland will only go backward. No offense to Proton as I believe they pull off a spectacular launch of Iriz but enough with the price control.. For RM62000 for top of the line Iriz, I can already buy a Corolla in US. It’s time to create a free market for the competition between carmakers.
In Thailand the government may change frequently but their policies remain rock solid.
In Bolehland our policy changes faster than you can blink although government remains the same since merdeka.
why no mention perodua as well???
p2 macai?
Can a Proton be sold as low as RM26k? Don’t be naive and syok sendiri.
Don’t forget the cronies’ appetite is big.
poor rakyat ‘s life is not cheap as axia 26k car
with wiating period more than 6 months its just a gimmick n only produced for school drving
rakyat smart oredi… has ni choice n buy g standard 32k
The problem is not really NAP, it is that policies in Malaysia are changing all the time, and not stable. If the Malaysian government had said for the next 10 years, hybrids made in Malaysia will be tax free, companies would have rushed here. But no, they only announced it for 2 years in advance… by the time the companies are ready to sell the hybrids in Malaysia it’s already too late, the tax cuts have expired. Maybe they’ll be extended, maybe not. Who knows.
Beloved Malaysia just lost another opportunity of circa MYR 5.3B of direct investment to Tomyamland just to safeguard someone/cronies’ pride. Imagine the entire value chain that could be created from both phases of MYR 2.9B and MYR 5.3B = 8.2B (FYI, it is nearly 3.5% of Malaysia gomen revenue as per last friday budget- MYR 235.2B), namely transportations,constructions, technology capability building, employees being trained in these world class companies and could be future leaders to lead MNC, overseas vendors visit that stay in premium hotel(well small money have to say, but again the value chain created to Hotel industry, imagine further), to name a few, how many % GDP growth and taxation could be obtained out from this? We are simply lossing too much edges on this. Automotive industry alone is a super huge value chain with sustainablility industry that surpass any industries (may be except oil & gas if value chain fully explored and captured) in this country. The Malaysian per head capita income will be improved progressively, debt will be reduced gradually, inflation will be offset .There are so many things the Malaysian leaders could do but yet nothing at all.
Soon… Malaysia going to export people to Thailand or Indonesia to become maid or labor
To make matter worst…Proton is incapable of making an ecoengine…Campro keep sucking fuel, VVT you bet will definitely suck fuel since it’s just modified Campro.
So we have expensive cars fuel sucking cars + no more fuel subsidy.
p2 macai trying hard to convince takyat buying his acia n myvi
no matter midified campro or not its claimed 7.4l/100km which is way better than 1.5 myvi 7.8l/100km
rakyat
smart oredi
Tengok ! Tengok ! Protect Proton punya pasal lar … Byk orang yg rugi … Job Opportunity – Investor – Economy – Lower Car Price – Better Car – Better Fuel Efficient Vehicle – Less Pollution – More RM rolling for our ppl etc … Kepada Tun – Apa lu pikir ?
ni naknprotect perodua punya pasal la.. malaysia can get better n real eev like thai… but end up witj liusy underpowered 3 cylindera axia
I am very happy, that a 1.5 L Diesel engine is now also possible.
Was today at Mazda Petchaburi were they told me that the new Mazda 2 will be available with the Diesel engine, too. But nut until late 2015…
The only EEV coming out is the Perodua Axia claimed to be EEV engine.
What so EEV about the 1.0cc engine?
You’ve forgotten the Great Wall M4…
Malaysia to be regional EEV hub
Yes this is happening in words only. As usual, it is easy to say WHAT we want to do, but after about a year there is still no concrete answer on HOW to do it. So the chance went to the land of smile.
Thailand…
Car makers even can adopted the change..
develop the 1.2 engine..no wonder our mirage is 1.2L 3 cylinder…
Malaysia..bull shit..
beribu ribu tahniah to siam
Our National Car Policy change yearly.
how are foreign investor going to invest with environment like this ?
This year said CKD Hybrid tax-free and next year NAP having different plan.
This year i invest to construct a factory for CKD Hybrid and construction complete by 1 and half year. By the time factory built , NAP policy is totally different.
Dont buy proton. Let the disabled horse put to sleep.Euthanize the biatch!
dont buy proton n perodua rite????
hahaha
Adui, our gomen smarter la, thailand need a few companies to setup production line to get 5b investment and only certain amount of that 5b goes into government pocket via tax e.g 30%. Ours just implement gst and a few billion gets into government coffer @100%
Next time don’t laugh at our government says they no brain okay?
Production line foreign investment all these really pening, implement tax goyang kaki money masuk lagi senang.
Congratulation to THAILAND!!!!!!!!!
poor to Malaysia ;-(
Not to forget their aftermarket parts manufacturer is blooming as well…*sigh*
our gomen is smarter… n established national car( perodua) from daihatsu n now can produce eev
Automotif FDI :-
1- Thailand (near 1 million car sold)
2- Indonesia (over 1 million car sold)
3- Malaysia (stagnent 600k)
4- Philipines & Vietnam (i belive few years time will overtake malaysia)
What should we do? mustapha mohamad are you sleeping?