ECO Technology for Future Vehicles Mr. Vallop Tiasiri Mr. Vallop - - PDF document

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ECO Technology for Future Vehicles Mr. Vallop Tiasiri Mr. Vallop - - PDF document

ECO Technology for Future Vehicles Mr. Vallop Tiasiri Mr. Vallop Tiasiri President of Thailand Automotive Institute President of Thailand Automotive Institute 29 March 2010 29 March 2010 th International Conference of Automotive Engineering


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SLIDE 1

ECO Technology for Future Vehicles

  • Mr. Vallop Tiasiri
  • Mr. Vallop Tiasiri

President of Thailand Automotive Institute President of Thailand Automotive Institute 29 March 2010 29 March 2010

at The 6 at The 6th

th International Conference of Automotive Engineering

International Conference of Automotive Engineering

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SLIDE 2

(3)

“ “Sustainable Sustainable Mobility Mobility” ”

Zero Emission ; Clean Renewable Energy; Save Vehicle Safety; Security

Direction of World Automotive Development

Source: BOI as of March, 09

100 Year 0.074±0.018 50 Year 0.128±0.026

Global mean temperatures are rising faster with time

Source : The Intergovernmental Panel on Climate Change (IPCC)

Challenges in Future Challenges in Future

CO CO2

2 emission from transportation is a

emission from transportation is a substantial portion of total greenhouse gas substantial portion of total greenhouse gas

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SLIDE 3

Natural Gas Low concentration Bio-Fuel Ethanol Gas-to-Liquid Biomass-to-liquid I ncreasing Efficiency Of Engines Optimization of I nternal Combustion Engine Hybrid Electric Driven

Automotive Technology Trend Automotive Technology Trend

Hydrogen Electric Motor Driven

2020

Motor Driven cars, like hybrid vehicles and electrical vehicles raising the Efficiency of Vehicle Technology with promoting alternative fuels

Interim Plan

Petroleum

  • Favorable tax structure for energy saving and

alternative vehicles

  • Promote fuel efficiency vehicles
  • Global liberalization trade policy
  • Promote harmonization of technical regulations;

ECE

  • Promote the investment of big bike and

Passenger Car by Board of Investment

Current Government Policy on Auto Industry Current Government Policy on Auto Industry

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SLIDE 4

Duty and taxes Import duty 80% CEPT (ASEAN) 5% Excise tax

  • not exceeding 2,000 cc.
  • 2,001-2,500 cc.
  • 2,501-3,000 cc.
  • More than 3,000 cc.

30% 35% 40% 50% Municipal tax 10%

  • f Excise Tax

VAT 7%

Passenger cars

Duty and taxes Import duty 40-80% CEPT (ASEAN) 5% Excise tax

  • Hybrid, Electric, Fuel Cell
  • Eco car
  • NGV
  • E20

10% 17% 20% 25% Municipal tax 10%

  • f Excise Tax

VAT 7%

*Energy Saving and Alternative Fuel Vehicles

* Energy Saving and Environmental Tax Incentive

Thai Automobile Tax Structure Thai Automobile Tax Structure

  • Quality Product

Quality Product compatible with compatible with environment, fuel efficiency environment, fuel efficiency and and safety , in line with global trend safety , in line with global trend

Eco-Car

Project

  • Fuel consumption : < 5 litres per 100 km
  • Car emissions : Euro 4 or higher, with CO2

emissions < 120 grams per km

  • Safety : full front- and side-impact protection

based on UNECE specifications

Promote Fuel Efficient Vehicles Promote Fuel Efficient Vehicles

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SLIDE 5

Classification of All (3,946) Car Models Currently on sales in Europe (Nov 2004) The Lowest Combined Fuel Consumption (Liters/100km) The Best 3.4

Top 5% 5.0

Top 10% 5.5 Top 15% 5.8 Top 20% 6.1 Top 25% 6.5 Top 30% 6.9 Top 40% 7.4 Median 7.9 Top 60% 8.5 Top 70% 9.1 Top 80% 9.8 Top 90% 10.9 The Worst 25.0 Source: Vehicle Certification Agency, UK

2 2 nd

nd “

“Global Niche Global Niche” ” ECO car ECO car

“ “Promote I nvestment Promotion for ECO car Promote I nvestment Promotion for ECO car” ” Energy Saving: Energy Saving: 5 liter/ 100 km.

  • incl. Hybrid, Alter. Fuel

Crash Safety: UN ECE R94&95 Emission Standard: EURO I V & CO2 < = 120g/ km.

Environment & Energy Conservation Global Warming Social Responsibility Social & Economic Development, and

Urbanization

Sustainable Mobility Thailand Automotive I ndustry

Suitability Economy of Scale

Rationale Behind the Rationale Behind the “ “ ECO Car Policy ECO Car Policy ” ”

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SLIDE 6

ECO Car ECO Car ’ ’s Concept s Concept

  • New

New “ “ ECO ECOlogical friendly logical friendly car car for modern society for modern society ” ”

  • “…a radical change

in vehicle design as well as environmentally friendly transportation, and away from the belief that small cars are basic and less safe…” [Toyota]

Production Capacity of 100,000 to 150,000

units/ yr

Brand New Vehicles Engine Parts Production Global parts production network Local value added 50-80 % Domestic sale of ECO cars Export of CBU and/ or CKD

Common Project Common Project Characteristics Characteristics

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SLIDE 7

Eco-cars

  • No more than 5 litres/100 km
  • Emissions compliant with Euro4 specification or

higher

Carbon dioxide emissions no more than 120 gm/km

  • Full front and side impact protection based on

UNECE specifications Investment Incentives

  • Exemption of import duties on machinery
  • 8-year corporate income tax exemption

New Eco New Eco-

  • Car Promotion

Car Promotion Manufacture of Automobile Parts for Eco-Cars

Manufacture of automobile parts

for international-standard eco-cars

Exempt from import duty on

machinery, regardless of zone

Corporate income tax exemption for

not more than eight years, regardless

  • f zone

90 percent reduction of import duties

  • n raw materials and finished auto

parts for 2 years

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SLIDE 8

6 projects approved Total capital investment: Bt 69 billion Total production capacity: 658,000

units/year

Total exports (volume): 419,000 units Total exports (value): Bt 113 billion Total employment: 11,000 workers

Thailand Eco-car’s Situation

Company Budget Capacity Million Baht Units/Year Honda 6,700 120,000 Suzuki 9,500 138,000 Nissan 5,500 120,000 Toyota 6,600 100,000 Mitsubishi 7,700 107,000 TATA 7,300 100,000

Eco Car Investment

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SLIDE 9

Conclusion Conclusion

Efficient utilization of the energy

resources by using the right technology

Offering and implementing technologies

for individual requirements

Ensure automotive industry

development policies are consistent and complimentary

Provide enough lead-time to ensure

effective implementation

New Automotive Policy

On June 10, 2009 the Board of

Investment announced it would promote large-scale investments for vehicles not yet produced in Thailand that use new technology

The policy is designed to attract

international automakers looking to restructure by relocating production facilities overseas

This policy is certain to expand the

range of opportunities for manufacturers of automotive parts and components

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SLIDE 10

New Automotive Policy (Criteria)

Investment in new assembly line Minimum investment of Bt 10 billion, exclusive of

land cost and working capital

Actual production of at least 100,000 vehicles per

annum in any year during the first five years of

  • peration

The project must include the production of a new

model that has never been manufactured in Thailand and the production of automobiles equipped with high-technology systems (e.g. hybrid drive, brake energy regeneration, electronic stability control, etc.), as approved by the Board of Investment

Must submit investment plan/sourcing plan for parts

and component to the Board of Investment for approval

Applications must be submitted within 2010

New Automotive Policy (Incentives)

Corporate Income Tax Holiday

5-year corporate income tax holiday for projects

with investment of at least Bt 10 billion excluding land cost and working capital

6-year corporate income tax holiday for projects

with investment of at least Bt 15 billion excluding land cost and working capital

One additional year of corporate income tax

holiday for projects submitted by the end of 2009

Exemption of import duties on machinery,

regardless of zone

Note: Corporate income tax exemption may not exceed capital investment, not including land and working capital

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SLIDE 11

Manufacture of Hi-Tech Vehicle Parts

Projects in high-tech vehicle parts and component

manufacturing are Priority Activities

Exempt from machinery import duties, regardless of zone Exempt from corporate income tax for 8 years, regardless

  • f zone

Examples of activities eligible:

Electronic Fuel Injection Systems ABS Brake Systems Substrates for Catalytic Converters NGV Parts Molds/Dies Automatic transmissions Continuously variable transmissions (CVT) Traction motors for automobiles (e.g. hybrid car, fuel cell) Electronic stability control (ESC) Regenerative braking systems

Manufacture of Fuel Cells

Projects that manufacture fuel cells are

classified as an activity of special importance and benefit to the country

As such, they are eligible for the

following incentives:

Exempt from machinery import duties,

regardless of zone

Exempt from corporate income tax for 8

years, regardless of zone

Projects are not subject to the corporate

income tax exemption cap specified in paragraph 2 of section 31 of the Investment Promotion Act

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SLIDE 12

Manufacture of Engines, Machinery and Accessories for Natural Gas Vehicles

Manufacture of NGV containers Manufacture of engines, parts, and

NGV accessories for vehicles

Manufacture of machinery or NGV

accessories for service stations

Classified as priority activities Exempt from import duty on

machinery, regardless of zone

Exempt from corporate income tax

for eight years, regardless of zone

Environmentally-friendly Materials and Products (1 of 2)

Activity:

  • Eco-friendly chemicals business

Criteria

  • Must utilize chemical/biotechnology procedures or must be raw

materials or necessary materials for manufacturing for the linkage industries

  • Must be chemicals that have a low effect on the environment

throughout their life cycle

  • The project must be approved by the relevant agencies

Incentives:

Classified as Priority Projects and can get uncapped exemption for corporate income tax and exemption on import duty of machinery and equipment

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SLIDE 13

Environmentally-friendly materials and products (2 of 2)

Activity: Activity:

  • Eco-friendly products business
  • Eco-friendly packaging
  • Eco-friendly plastic or polymer products
  • Criteria

Criteria

Must be packages or products that are formed by plastic/polymer that has less effect on the environment through its life cycle Must use method such as Life Cycle Assessment (LCA) according to ISO (ISO 14040 series) to evaluate the total environmental effect through the products’ life cycle

I ncentives:

Classified as Priority Projects and can get uncapped exemption for corporate income tax and exemption on import duty of machinery and equipment

BOI Policies to Promote Renewable Energy

All Renewable & Alternative Energy Projects

are Treated as Priorities Activities

Incentives: Import duty exemption on

machinery and income tax exemption for 8 years, regardless of zone

Eligible Activities include:

Fuel from agriculture and waste (ethanol, bio-

diesel, biogas)

Power plants using renewable fuel Manufacture of solar cells Manufacture of fuel cells NGV equipment and parts

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SLIDE 14

Energy-Savings and Alternative-Energy Businesses (1 of 2)

Activities

Manufacture of alcohol or fuel from

agricultural products, including scrap, garbage, and/or waste

Manufacture of energy-conserving

machinery or equipment, or manufacture

  • f machinery or equipment which uses

alternative energy

Manufacture of fuel cells Manufacture of solar cells

Energy-Savings and Alternative-Energy Businesses (2 of 2)

Activities

Power generation from alternative

energy (wind/biomass/ agriculture materials/gas)

Manufacture of engines, machinery,

and accessories for natural gas vehicles

Assembly of natural gas vehicles,

especially buses or heavy trucks

Natural gas service stations for

vehicles

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SLIDE 15

Alternative Energy in Thailand

Solar Biogas Wind

Bio Cluster

Garbage Water Bio Diesel Ethanol

Investment Opportunities for Bio-Fuel

Thailand is the # 1 exporter of cassava/tapioca products

and the # 2 exporter of sugar in the world, creating surplus of raw materials for ethanol production.

2009 Forecast: 28.9 million tons of cassava and 2.75 million

tons of molasses will be available for ethanol production.

Thailand is the # 1 exporter of rice, meaning easy

availability of biomass feedstock if the cellulosic to liquid fuel technology becomes commercially feasible.

Thailand’s large agro-industry including tapioca, palm oil,

modern farming, & food processing, along with waster treatment units, create opportunities for the bio-gas business. Incentives: Classified as Priority Project

Exemption on corporate Income tax Exemption on Import duty of Machinery and equipment

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SLIDE 16

31

Eligible Activities – All BOI categories that invest in machinery that will: (1) Reduce energy consumption (2) Use alternative energy (3) Reduce the impact on the environment

Source: www.boi.go.th/ Press release, as of March 4,2009

Additional Incentives for Efficiency Improvement

32

Incentives

  • Exemption of import duty on

machinery

  • Exemption of corporate income tax

for 3 years, totaling 70% of investment amount

Criteria

  • Must submit application by the end of

2009 and complete the investment by the end of 2011

Source: www.boi.go.th/ Press release, as of March 4,2009

Additional Incentives for Efficiency Improvement

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SLIDE 17

www.thaiauto.or.th