Honda Automobile (Thailand) is set to begin full operations at its new 17.2-billion-baht plant in Prachin Buri's Rojana Industrial Park this month.
Chief operating officer Pitak Pruittisarikorn said the Japanese car maker has positioned the Prachin Buri plant to make subcompact vehicles, such as the 10th generation Civic sedan, with initial production of 60,000 units a year.
Initially, 20,000 units will be completely built up and 20,000 units completely knocked-down for export, with the rest to be made available for domestic sale over the next 12 months.
"Honda's Thailand operations will have a combined annual production capacity of 360,000 units once the output at Honda’s first facility at Rojana Industrial Park is combined, making Thailand the fourth-largest production base of Honda worldwide," Mr Pitak said.
In February 2013, the Tokyo-based parent firm announced that it would spend nearly 20 billion baht on a new assembly plant and expansion of the existing facility in Ayutthaya to capture strong domestic and export demand.
Some 17.2 billion baht was used to build the assembly and engine plant in Prachin Buri, which was developed for production on par with Honda's Yorii plant in Japan.
The factory was intended to have a maximum production capacity of 120,000 vehicles per year, but Mr Pitak said full production capacity would depend on the domestic and export situation.
The remaining amount went to increase the Ayutthaya plant's annual production capacity to 300,000 vehicles from 240,000.
Noriaki Abe, president and chief executive of Asian Honda Motor, said Honda is ready to localise the production of its hybrid, plug-in hybrid and electric vehicles in compliance with the government’s plan to promote Thailand as a production hub for hybrid, electric and hydrogen vehicles.
Prime Minister Prayut Chan-o-cha, who met country chief executives from Toyota, Isuzu, Nissan and Honda on Monday, said the government will offer further investment privileges and full support for finance, research and development, human resources and infrastructure.
The four Japanese car brands accounted for 58% of Thailand’s automotive shipments last year, which totalled 1.25 million units worth US$17.58 billion.
Including equipment and parts, the export value amounted to $25.60 billion in 2015.
The premier also ordered the Industry Ministry to team up with the Finance, Commerce, Labour, Natural Resources and Environment and Transport ministries to map out the details of supporting plans covering investment privileges, tax incentives and other perks to continue drawing foreign investment in the automotive industry.
Related industries have also been ordered to jointly prepare the country's automotive development roadmap for the next five and 20 years.
Gen Prayut confirmed that the government would continue supporting eco-car development but urged car makers to apply higher technology and alternative energy.