E20 Gasohol - Driving Down Car Prices
If you are in the market for a new Honda just wait a few weeks and you'll save yourself between THB 30,000 and THB 110,000 depending on the model you are aiming at. The reason? On 1st January 2008 the government's tax reduction on E20 capable cars will come into effect, and Honda will be one of the companies to benefit from the 5% excise tax reduction, and it looks like they intend to convert this directly into lower prices.
According to Yuatyad newspaper, all new Honda models in Thailand will be able to run on the E20 gasahol, and will therefore benefit from the price reductions, but at present only the Accord and CR-V are E20 compatible. Although Honda is yet to announce exact prices, this announcement is expected by the end of the year. But the expected price drops would be between THB 30,000 and THB 40,000 for the City, THB 40,000 to THB 60,000 for the Civic, and THB 60,000 to THB 90,000 for the CR-V.
As for the Accord which was launched late last month, reductions will be anywhere between THB 80,000 and THB 110,000! I wouldn't be feeling all that excited about this news had I just booked a new Accord or CR-V.
Ford was the first company to introduce an E20 compatible vehicle, the Focus, although the Thai government stymied its progress somewhat by back-peddling on the decision to implement the E20 tax breaks that Ford was counting on. Now however, finally the Focus able to benefit.
Mitsubishi also have a E20 capable vehicle, the Space Wagon MPV and have announced that their prices have already been lowered, since Mitsubishi Thailand Co Ltd didn't want customers to hold-off purchases until the new year. After the price reductions, the Space Wagon ranges from THB 1.455 million to THB 1.670 million.
Update : Honda E20 Price List