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Suzuki to build Thai small-car plant for Eco car project plans 2012 start

Suzuki Motor Corporation is moving forward with its plans to take part in Thailand’s eco-car project. Suzuki received Thai approval for eco-car production in December 2007. The company put its plans on hold but then got the Thai go-ahead to start building an automobile plant. It will hold a ground-breaking ceremony at the Hemaraj Eastern Seaboard Industrial Estate in Rayong Province on 30 November 2009.

Thailand  has increased tax incentives to attract global carmakers to invest in output in Thailand of small passenger vehicles with certain specifications such as fuel economy of at least 20 km/litre (47 mpg) under its so-called “eco car” project.
Other Japanese carmakers such as Toyota Motor Corp, Mitsubishi Motors Corp, Nissan Motor Co, Honda Motor Co, as well as India’s Tata Motors Ltd, plan to the take part in the eco-car project.
Suzuki, Japan’s fourth-largest automaker and known for its strength in the compact car segment, said it would invest 20 billion yen ($225 million) for a manufacturing site including engine assembly. It plans to start production of the 1.3-litre both diesel and benzin engine  in the eastern province of Rayong in March 2012.

Suzuki said it would build about 10,000 cars in the first year. with the capacity to manufacture maximun 100,000 small cars a year in by 2017 after receiving government approval for the project.

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