BANGKOK: Thailand's state-run investment promotion agency on Monday approved an investment worth nearly 200 million dollars by Japan's Honda Motor Co. to produce fuel-efficient cars in the kingdom.
Honda, Japan's second-largest automaker, is expect to start production as early as 2009, said Adisak Rohitasune, senior vice president of Honda Motor in Thailand.
Honda will invest 6.7 billion baht (195 million dollars), Thailand's Board of Investment said, adding the company will make some 120,000 units of small cars per year.
Thailand has offered tax incentives to automakers to produce eco-cars that meet the next generation of European emission standards, which will require that by 2012, cars release no more than 120 grammes of carbon dioxide per kilometre.
Thai business leaders have hoped the scheme would help stimulate the kingdom's auto market, which has seen domestic sales falling amid sluggish consumer confidence.
