April 1 German carmaker Volkswagen AG
has applied to set up its first plant in Thailand to
help narrow the gap with Toyota Motor Corp, Bloomberg
reported late Tuesday citing people familiar with the matter.
The manufacturer is seeking to participate in a government
program offering tax exemptions for automakers investing at
least 6.5 billion Thai baht ($200 million) in local
manufacturing, the media service ,was pending.
Carmakers had until March 31 to apply for the programme
which includes vehicle assembly, components and engine
production, according to a ministry statement from October.
People told Bloomberg that Volkswagen has not made a final
decision on producing vehicles in Thailand as the exact terms
and conditions may still change.
Volkswagen could not be reached for a comment outside of
normal business hours.
Volkswagen sees a "strong market opportunity" in southeast
Asia, Hans Dieter Poetsch, chief financial officer of the
multinational automaker said in a presentation published on the
company's website last week.
(Reporting by Aashika Jain in Bangalore; Editing by Richard