Honda Accord hybrid production in Thailand, not Malaysia

Production of new Honda Accord hybrid sedan shifted to Thailand because of tax incentives for greener cars.

Here comes news of another economic loss for the Malaysian automotive sector.

Whilst Malaysians look towards the production of “flying cars” and a new national car, Thailand’s Board of Investment is working hard to bring car manufacturers to set up and build their new generation vehicles in Thailand for export to the Asean region and beyond.

Honda Motor Japan has just announced that they will shift the Japanese production of their all new Honda Accord hybrid sedan to Thailand, where it wants to take advantage of tax incentives for manufacturing greener cars.

The Thai government is encouraging production of hybrid and plug-in hybrid cars including electric vehicles by providing favourable corporate tax breaks, cutting excise duties and lowering levies on imported manufacturing equipment.

This is encouraging more car manufacturers to move and set up their Asean hub in Thailand.

The total hybrid system horsepower is rated at 212.

Economic advantage

A move like this also brings component manufacturers, tyre manufacturers, glass, metal and aluminium production to the country to provide adequate supply to the car manufacturer.

This translates to job creation, economic wealth and increased trade which Thailand will continue to enjoy.

The move will start with the 2019 Honda Accord model scheduled for release in Japan in early 2020.

Honda is also considering exporting from Thailand to other countries, including Malaysia, New Zealand and also Australia.

Investment amount

Honda Japan plans to spend 5.82 billion baht (US$189 million) on the plan, which will expand its output of cars with electric motors.

Honda’s plant in Sayama, north of Tokyo, has been making the Accord but will terminate auto production by the end of March 2022.

Honda decided it would be more efficient to import the Accord from Thailand, where its plant already makes right-hand drive cars for the Asean market and a little beyond.

Honda’s decision for this production shift comes as the world’s car manufacturers grow more selective about investments, aiming to enhance efficiency.

Emerging economies in Asia, which are rapidly becoming more technologically advanced, have become appealing options for making not just compact cars but also green vehicles like hybrids.

The car’s system can also work as an EV, or a purely electric vehicle, for even better fuel economy performance.

Hybrid power

The Honda Accord Hybrid inline four-engine produces up to 143 hp and 129 lb-ft of torque.

The AC Synchronous Permanent Magnet Electric Motor earns 181 hp and 232 lb-ft of torque. Altogether, the total hybrid system horsepower is rated at 212.

The Accord Hybrid also uses a propulsion system that shifts quickly and seamlessly between electric, hybrid, and engine power.

The system can also at times work as an EV, or a purely electric vehicle, for even better fuel economy performance.

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