Japanese car maker Mitsubishi Motors Corporation says it is committed to eco-car manufacturing in Thailand following the Board of Investment (BoI) approval of its investment applications last October.
Morikazu Chokki, the newly appointed president and chief executive of Mitsubishi Motors (Thailand), said the focus would be on the expansion of production capacity granted in the first phase of the eco-car scheme.
The approved applications call for the company to invest 4.9 billion baht to make 233,000 eco-cars a year.
Mitsubishi also asked for BoI approval to expand production capacity from 180,000 vehicles in the first phase to 220,000, requiring investment of 7.7 billion baht.
"The long-term production plan needs to be on a step-by-step basis," he said. "Mitsubishi started eco-car production in 2012 and the current milestone is the expansion at the plant in Chon Buri."
Mitsubishi, Honda, Toyota, Nissan and Suzuki all participated in the first phase of the eco-car scheme launched in 2007, which attracted a combined investment of 28.8 billion baht.
Mitsubishi spent 8 billion in 2010 to construct its third plant at Chon Buri's Laem Chabang Industrial Estate, with the goal of making 150,000 eco-cars a year. In 2012 it spent another 1 billion baht to expand eco-car output to 200,000 units.
Over the last three years, the company produced 360,000 eco-cars in two models: Mirage and Attrage.
Mitsubishi currently produces 165,000 eco-cars a year.
From three production facilities, Mitsubishi makes 424,000 total units a year including pickups and passenger cars. Total production capacity of the three plants is 510,000 units a year.
Some 70% was slated for export to 150 countries. Mitsubishi sold 62,885 units last year domestically, down by 39.9% from a year before. Passenger cars accounted for 23,387 units, down 47.4%, with commercial vehicles at 39,498 units, down 34.4%.
Mitsubishi reported its market share in the Thailand fell to 7.1% last year from 7.9% in 2013.
Last year the company shipped 310,000 vehicles from Thailand, up 7% from a year earlier. Some 100,000 units were eco-cars, with the rest Triton pickups and Pajero Sport pickup passenger vehicles.
The company expects its combined domestic sales to rise 11.3% this year to 70,000 units, with exports increasing to 340,000 units.