Land Rover is planning to build the next-generation Defender in Thailand at an underutilised facility in Laem Chabang in the eastern province of Chon Buri.
The current Defender (above) is expected to evolve into a more fashionable vehicle in 2014, while also enjoying a lower excise tax rate.
The off-roader, which has served both the military and civilians around the world for decades in its current form, will get a facelift in 2014.
According to industry sources, the plan is to use the country as a regional production hub for right-hand-drive versions of the Defender.
The initial production target of the completely knocked-down Defender is around 500 units per year for markets in this region. An investment figure hasn't been disclosed.
"Although the figure is quite low to yield proper profits, Land Rover doesn't want to take a risk [by making more than that]," said one source.
Land Rover was attracted to Thailand because of the extensive parts supply network and the privileged excise taxes for pickups.
Today's Defender uses a chassis-on-frame body and would be counted as a PPV (pickup passenger vehicle) taxed at 20% like the Toyota Fortuner if made in the country.
The more utilitarian versions of the Defender could attract a lower 3% tax rate (12% for a double-cab), although the vehicle would have to be adapted with rear leaf springs as stipulated by excise rules.
Should the Defender be able to avoid the 80% import duty and 35% excise tax (it has a 2.4-litre diesel engine today), its price would fall substantially.
The source said the ideal price range of the Defender would be 1.5 million to 2 million baht, although nothing is final yet. Currently the Defender retails at 3.25 million in completely built-up form.
This is not the first time Land Rover produced vehicles in Thailand. In the late 1990s, it assembled the first-generation Freelander SUV at the Thai-Swedish Assembly on Bang Na-Trat Road.
At that time, there was a special tax rate for SUVs, officially known as "off-road purpose vehicles". However, tax rates for SUVs and passenger cars were merged in 2004.
This doubled the retail price of all Land Rover models, forcing the brand to close down assembly lines.
Credit: Bangkok Post (www.bangkokpost.com)
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