The Board of Investment (BoI) recently announced a 2nd generation eco-car plan and producers can request applications between now and 31 March 2014.
So what are the key details?
|Eco-cars phase 1||Eco-Cars Phase 2|
|Petrol-fuelled engines||1300 cc||1300 cc|
|Diesel engines||1400 cc||1500 cc|
|Fuel efficiency||5.0 l / 100 km||4.3 l / 100 km|
|Carbon-dioxide emission||120 grams / km||100 / grams / km|
|Engines standards||Euro 4||Euro 5|
|Minimum Investment (THB mn)||5,000||6,000|
|Production units requirement||100,000 units / year 5||100,000 units / year 4|
And corporate income tax exemption for 6 years
So who benefits?
Currently there are 5 auto manufacturers in the eco-car phase 1 group: Nissan, Honda, Suzuki, Mitsubishi and Toyota.
This year, as of August, 237,000 eco-cars were produced and annual numbers are expected to break 300,000 units (note: last year was 258,000 units)
Now of the listed companies that are in the auto sector (AH, SAT, STANLY, IHL and TRU) it appears that STANLY benefits the most as they produce lighting for 4 eco-car models from Nissan, Honda, Suzuki and Mitsubishi. In reality we do like other names in this sector, and the fact they are back to trading around the 4Q11 flood time levels even though their earnings are far higher for the foreseeable future makes us scratch our heads.