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Sunday, May 16, 2010

Tata Motors Abandoned Eco Car Project Promoted by Thailand

Tata Motors has called off its Eco Car project in Thailand. Upon promotion of Thailand government, Tata along with some other car makers decided to participate in the eco car project. However, India’s largest commercial car maker has now decided to abandon the project without citing any reason.

Media reports suggest that Tata’s back out from the project may have at least 2 reasons. First of all, government initially set 17% tax for the eco car which has now been increased to 22%. The second reason is as per the commitment with Thailand government, Tata has to invest a huge amount in this project which Tata officials are no longer interested in.

Tata’s eco car investment project certificate has also been terminated as the company did not maintain the 31st March 2010 deadline for submitting the details of the eco car project. However, other car makers like Toyota, Mitsubishi, Honda and Suzuki are going to take part in the eco car project.

Related article:

thailand-business-news

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