Thailand Grants Volkswagen Approval To Build Production Plant

After months of delay, Volkswagen has finally gained the approval from authorities in Thailand to build its first ASEAN production plant near Bangkok, manufacturing fuel efficient models. This comes following the application submission for the second phase of Thailand’s Eco-car scheme, whose deadline ended on 31 March 2014.

A report from Reuters indicated that the car maker is now assessing the situation and there has yet to be a decision on whether to build the factory. The investment of one billion Euros is to build a plant that manufactures 1.4-litre petrol engine cars, which could see an output of up to 300,000 vehicles per year.

The interest to build a plant in Thailand is also to take advantage of tax breaks where successful applicants of the scheme will get a six year exemption from corporate income tax.

In Malaysia, Volkswagen models currently being produced here include the Passat, Polo and Jetta. These are done in conjunction with a local partner, DRB-HICOM.