In an attempt to boost the automotive industry, while also bolstering overall investment, Thailand has finally moved forward with a long-delayed plan to become a regional hub for the production of "eco-cars". On June 15th the Board of Investment (BoI) finalised a range of incentives for the production of such vehicles, and the government has also approved a large cut in excise taxes. While it is a nice idea to develop cheap environmentally friendly cars, there are likely to be a number of obstacles to the plan's success.
Carmakers in Thailand have enjoyed stellar growth since the late 1990s, partly in response to rising local demand, and partly owing to the efforts of the government of the former prime minister, Thaksin Shinawatra, to encourage foreign investment and promote Thailand as a regional automotive hub.
