In 2007 Thailand's government decided to grant tax incentives to auto manufacturers that produce small, fuel-efficient Eco-Cars.
Source: UNEP, 2008, Green Jobs: Towards decent work in a sustainable, low-carbon world
In order to receive tax breaks, a company must produce cars that do not surpass a certain engine size (1,300 cubic centimeters for gasoline engines and 1,400 cc for diesels), consume 5 liters per 100 kilometers (47 miles per gallon) or less, generate no more than 120 grams of CO2 per kilometer, and meet Euro-4 emissions standards. Companies must make a minimum investment, produce at least 100,000 cars by the fifth year of production, and produce at least 80 percent of parts domestically. After Thai Government applied the "Eco-Cars"-policy the excise tax rate was set at 17 percent (compared with the typical 30-50 percent), and eco-car manufacturers receive up to eight years of exemption from corporate income tax payments and machinery import duties.