Toyota says more needed to promote hybrid cars

Toyota Motor Thailand has called for the government to step up promotion of hybrid cars and other environmentally friendly vehicles, including tax incentives to encourage local production. The company asked for a cut in excise duty on hybrid vehicles with engines above 3,000cc to 30% from 50% as the lower tax would support large petrol-electric vehicles, said government spokesman Panithan Wattanayakorn. The government was also asked to stimulate the market by supporting auto loan financing via state banks as commercial banks have become more wary about extending loans to consumers. The Joint Foreign Chamber of Commerce in Thailand also made some new recommendations to the government yesterday, saying the most critical challenge was unemployment, which would lead to a reduction in local spending. Nandor von der Luehe, the chairman of the JFCCT, said the government’s stimulus package was good but additional details to help ease fears of unemployment were needed. “We propose that the government consider reducing the ‘succession payment’ from the current 75 percent to 50 percent of employees’ salaries,” he said. Mr. Von der Luehe said he also supported the government’s work on contingency plans in case the global economy plunges further into recession. (January 28, 2009)