Describe what the Thai government is doing to encourage the production of more eco-

cars. Do you think young Thai people will want to buy the new eco-cars? Give reasons to
support your answer.

The Thai government is taking some measures to encourage the production of eco-cars.
First of all, following a Finance Ministry recommendation, the Cabinet has made the
decision to slash the excise tax for small cars from 30% to 17%, which is to be enforced
in October 2009. Moreover, the Board of Investment and the Industry Ministry may issue
more guidelines. Finally, the Board of Investment is considering additional incentives to
encourage investments from car manufacturers.

It is likely that young Thai people will want to buy more eco-cars. With the rising oil
prices, the eco-cars are a perfect fit for young people whose modest incomes may
constrain their choice for more energy-consuming cars. Moreover, the price of those cars
will be lower than existing cars, which could also be a factor for young Thais to buy
them, instead of buying second-hand, gas-guzzling cars and motorbikes, which pose more
risk on the road.