Tax incentives for green engines

Leading European automakers urged the Thai government to offer tax incentives for environmentally friendly diesel engine technology to give it a larger presence in the local passenger car market. Given the current high oil prices, Mercedes-Benz AG and BMW said that diesel-engine passenger cars were the right option for Thai consumers since diesel offered higher fuel efficiency than gasoline, with lower carbon dioxide (CO2) emissions. However, Thailand has focused so far on tax incentives for gasoline-based fuels such as E20 and E85 gasohol, as well as gasoline-electric hybrid cars, while no incentives were available for diesel technology. In Thailand, Mercedes-Benz has offered diesel engines in its E, C, and S classes for several years and a diesel A-series sedan was made available last year. Phaibool Poocharoen, senior vice-president of Tri Petch Isuzu Sales, said compressed natural gas (CNG) was more popular with Thai motorists seeking alternatives to gasoline, which has reached 40 baht (US$1.20) a liter. (June 14, 2008)