JAPANESE FIRMS TO CONTINUE THAI STAKE

       The Industry Ministry wants Japanese manufacturers to make energy-saving autos apart from eco-cars and companies like Panasonic to produce batteries for electric-vehicle (EV) production in Thailand.
       Minister Charnchai Chairungrueng said following a road show here staged by the Board of Investment (BoI) and the Thailand Automotive Institute, four auto-makers - Nissan, Honda, Mitsubishi and Suzuki - expressed their intention to continue their investment in Thailand. That will be in the form of eco-cars and other types of energy-saving and ecological vehicles, including hybrid and electric vehicles.
       "We asked them to draw up their proposals in detail and submit them as soon as possible. Their investment plans will have our full support as long as they benefit our country," he said.
       Charnchai also met with Panasonic executives yesterday and said the company would also expand its investment in the Kingdom. It is interested in producing hi-tech screens and building a plant to make batteries for EVs.
       Amid strong concerns about global warming and fossil-fuel depletion, auto-makers have shifted their focus in recent years to developing models that are more environmentally friendly and energy-efficient.
       Thailand began to be aware of these changing trends in the automotive industry in 2007 and last year announced it would promote eco-car investment and approve tax incentives for six auto-makers: Honda, Nissan, Toyota, Mitsubishi, Suzuki and Tata.
       However, under pressure from the global financial meltdown, most of them postponed their eco-car production plans until demand recovered.
       Only Nissan insisted it would move forward and launch eco-cars in next year's first quarter.
       Although it, too, was hit by the economic crisis, Nissan accelerated development of hybrid and electric cars, in order to boost sales aggressively.
       Mitsubishi is scheduled to start commercial production of EVs by next year, while Toyota has received a good response for hybrid cars from the Japanese market, with an eight-month backlog of orders.
       "The outlook for the automotive industry is becoming brighter, with demand picking up in some segments, such as passenger cars and energy-saving vehicles.
       Although other segments remain murky, we are at least seeing a clearer direction for the automotive industry," said Vice Minister Sorayut Phettakul.
       He said to enhance Thailand's competitiveness in making EVs, the Kingdom needed a strong supply chain, particularly regarding battery technology.
       "That's why we're trying to persuade Panasonic, the leader in EV batteries, to expand its investment in Thailand," he said.
       Santi Leelawong, director of the BoI's Osaka office, said energy-saving vehicles had been well received by the Japanese, due partly to a government subsidy of 15-20 per cent of the selling price.
       So far, Mitsubishi is the only company to produce EVs for the market. The battery in its cars is good for 160 kilometres, but development continues in a bid to extend the range.