Eco-car makers have voiced support for the state's reconsideration of the second phase of the eco-car scheme, urging instead a focus on hybrids and electric vehicles.
Pitak Pruittisarikorn, chief operating officer at Honda Automobile (Thailand), said the company was gravely concerned about an automotive oversupply not only from eco-cars but from all vehicle types.
"The eco-car scheme, in fact, does not support all automobile makers," he said.
"Thailand's automotive industry has been developed for many decades to have a massive production for all segments covering pickup trucks, passenger cars and eco-cars, but neither domestic nor export demand is growing as expected."
Prime Minister Prayut Chan-o-cha on Monday said the second phase of the eco-car project must be considered carefully out of concern it might hurt the car industry, which was still struggling with a severe drop in sales due to effects from the previous government's first-time car buyer scheme.
Mr Pitak said car makers in Thailand faced many negative factors, with future car demand stolen by the first-time car buyer scheme and the strong baht weakening export capability amid a stuttering global economy.
Mazda Sales (Thailand) also joined Honda's calls for the government to promote high-technology vehicles such as hybrids or electric models.