Honda Considering Building Hybrids in Thailand

6 December 2005

AFX. Honda is considering plans to assemble its hybrid cars in Thailand if the government provides sufficient tax incentives. This would mark Honda’s first hybrid assembly outside of Japan.

Asian Honda, the carmaker’s Bangkok-based Asia-Pacific headquarters, said increasing demand for hybrid cars, driven by high global oil prices, has prompted Honda to look for more production plants outside Japan.

“We are looking for a further development of tax benefits (in Thailand) at this stage,” Asian Honda's spokeswoman told Agence France-Presse.

Honda’s Bangkok-based spokeswoman cited local availability of automotive parts suppliers as a key reason for Honda’s interest for further expansion in Thailand.

The automaker already produces the Honda City, a passenger automobile designed exclusively for the needs of emerging market customers, Civic, CR-V and Accord at its plant at Ayutthaya. Honda cars made in Thailand could enjoy a high ratio of local content enabling the carmaker to ship its hybrid vehicles overseas at a competitive cost.