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Tata Motors to produce ‘eco cars’ in Thailand

Tata Motors, Toyota & Mitsubishi as received Thailand government’s approval for setting up a greenfield facility to manufacture “eco cars”. The estimated investment is about Rs 760-1,015 crore.

The three plants would be built on industrial estates in eastern Thailand. Last year, the BOI (The Board of Investment of Thailand) approved the eco car production plans of Honda, Suzuki and Nissan worth a combined 21.75 billion baht with a total capacity of 378,000 cars per year. Thailand is the world’s biggest maker of one-tonne trucks and has struggled for years to convince big carmakers to invest in export-oriented plants for small cars, including the eco car project which stalled in 2004 amid fears it would bleed sales from other vehicles.

Tata Motors aims to invest 7.3 billion baht on a plant that will produce up to 100,000 eco cars a year. Production is expected to start in 2010 and 52% of the output will be exported to Asia-Pacific and South Africa, the board said.

Mitsubishi Motors (Thailand) would spend 4.7 billion baht on a plant with an annual capacity of 107,000 eco cars. Of this, 88% will be exported. Production is scheduled to start in 2010, the board said. Its key export markets would be Australia, the Philippines, Indonesia and Japan.