Volkswagen has applied to open its first factory in Thailand to improve its standing against Toyota, insider sources have told Bloomberg on Tuesday.
The German car-manufacturer wants to take part in a programme offering tax breaks to carmakers investing at least 6.5bn Thai baht (£120m) in local manufacturing. The programme, which was opened for applications between October 2013 and March 2014, includes vehicle assembly and components and engine production.
Although Volkswagen was not immediately available to comment, in a presentation published on the company’s website last week, Volkswagen’s chief financial officer Hans Dieter said the company sees a ‘strong market opportunity’ in southeast Asia.
People told Bloomberg that Volkswagen has not made a final decision on producing vehicles in Thailand yet as the exact terms and conditions of the programme may still change.