Tata Motors has decided to shelve participation in the government backed eco car project in Thailand citing the recent decision to hike excise duty structure from 17% to 22%.
The company also failed to meet the 31 March deadline to submit a project report, leading to the termination of the investment certificate. The project involved a minimum investment of around INR6bn (US$131.4m).
The project had also attracted Toyota, Honda, Mitsubishi and Suzuki to design and manufacture of 100,000 units annually of a car with a Euro IV-compliant engine under 1.4 litres and CO2 emissions under 120g per km.
Tata Motors had been toying with the idea of launching a version of its Nano in Thailand but had always indicated it would introduce a fuel efficient, environment friendly car manufactured locally.
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