September 07, 2008

TATA Motor’s eco car project in Thailand to get approval

BS reported that TATA Motors is likely get approval from Thailand’s Board of Investment for its proposal to make an eco car. A Board of Investment official in Bangkok said that the internal approval meeting, scheduled for April 2nd 2008, is likely to give its nod to TATA Motors to manufacture the eco car.

The eco car is an initiative of the Thai government to make it a prominent producer of cars that meet state of the art emission and safety norms with a stringent fuel economy of 20 kilometer a liter.

It may be noted that Board of Investment has issued a notification in June 2007 inviting proposals from global car makers to manufacture the eco car. It set a minimum pollution standard of Euro IV or higher, with emissions no more than 120 grams of carbon dioxide per kilometer. The car should also satisfy passenger safety standards for both front and side impact as specified by UNECE Reg 94 and Reg 95 respectively.

TATA Motors has not made a formal announcement on its proposed investment for this project. But Board of Investments stipulates a minimum investment of THB 5 billion. Approved eco car projects will receive corporate income tax exemption for 8 years and permission to import machinery duty free.

TATA Motors will be the third global car maker to get approval for such a project after Suzuki Motor Corporation and SIAM Nissan Automobile, whose projects are expected to start commercial production in 2010.