Thailand, not Malaysia destined to build the Honda Accord Hybrid

KUALA LUMPUR: Honda Motor Japan is under plans to shift its local manufacturing plant of the new Honda Accord hybrid sedan to Thailand. Why? Well, to take advantage of the tax incentives for manufacturing eco-friendly vehicles. The Thai government nowadays is encouraging the production of plug-in hybrid and hybrid cars, along with electric vehicles.

Encouraging the auto manufactures to move their manufacturing setup in Thailand are the following incentives -

• Favourable corporate tax breaks
• Cutting excise duties
• Lowering levies on imported manufacturing equipment

A move like this will also attract tyre manufacturers, components manufacturers, aluminium, glass, and metal producers to Thailand. All this will provide adequate supply to the auto manufactures coming in the country. Thus, Thailand will continue to enjoy economic wealth, increased trade, job creation. Whereas we are missing it all out as we are concentrating more on ‘flying car’ story.

The 2019 Honda Accord Hybrid is scheduled to release in Japan in early 2020, and Honda is considering to export the car from Thailand to other countries like Australia, Malaysia, and New Zealand.

Honda Motor Japan plans to invest USD 189 million on the manufacturing factory, and this will expand the compony’s vehicles with electric motors.

Honda’s facility in Sayama, Tokyo, has been manufacturing the Accord sedan but will end auto production by the end of March 2022.

Honda thinks that it would be much more efficient to import the Accord sedan from Thailand where right-hand-drive models are already manufactured for the ASEAN market, including a few more.

The Japanese automaker’s decision for this shift in production comes as the company grows more selective about investment, all to enhance efficiency. Emerging economies in Asia, like Thailand, are rapidly becoming technologically advanced and are appealing options for making both compact cars and green vehicles like PHEV.

Besides, we hear that Japan’s Mazda Motor Corporation and Toyota Motor Corporation are also in plans to manufacture electric cars in Thailand.

Also Read:- 2020 Honda CR-V facelift unveiled with updated styling in the United States