Production of at least two eco car models in Thailand has been delayed because of the weak domestic market, according to media reports in Thailand.
Mitsubishi Motors (Thailand) president Masahiko Ueki told local reporters his parent company in Japan had not yet approved the production timeframe for a second eco-car model due to the depressed market conditions in Thailand.
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Ueki said the demand outlook for next year was “unpredictable”, adding the domestic market would take time to recover.
The Thai vehicle market was lifted artificially in 2012 and 2013 by the government’s first-time buyer incentive scheme which lifted sales to a record 1.44m units in 2012 before they fell to 1.33m units in 2013.
Mitsubishi expects the market to fall to between 800,000 to 900,000 units this year with the political crisis earlier this year also hurting the domestic economy.
Nissan Motor has also chosen to wait for more positive signs in the market before launching its THB6.9bn (US$210m) eco-car programme. A final decision on the timing will be made by the parent company in Japan.
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By GlobalDataAccording to the Thai Board of Investment rules, eco-car projects must achieve a minimum annual output of 100,000 units by the fifth year of production, including domestic sales and exports.
