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Energy-Saving Cars Encounter Resistance among Automakers in Asia.

Bangkok Post (Bangkok, Thailand)

| August 02, 2001 | COPYRIGHT 2001 Bangkok Post. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Aug. 2--Policymakers and auto manufacturers for years have been promoting Thailand as the next "Detroit of Asia", the auto centre for Southeast Asia.

Yet while making vehicles has grown quickly into one of the country's largest industries, cars remain out of reach for most people.

With per capita income standing at about 10,000 baht a month, buying even the cheapest car or pickup truck can mean years of debt.

One plan to help boost opportunities for low- and middle-income consumers to buy new cars has been to offer tax incentives for "city cars".

Popular in Japan and Europe, city cars typically offer engines of no more than 1,100cc, smaller interior cabins and higher fuel economy than standard-sized sedans.

Tax authorities last year proposed that taxes for city cars could range between 3 percent and 15 percent , compared with the 35 percent -plus charged for larger vehicles. Ultimately, retail prices for the autos are expected to be around 350,000 baht.

However, major automakers say they have no plans to produce city cars, citing a lack of demand.

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