Tri Petch Isuzu Sales, the local distributor of Isuzu trucks, is calling for the government to introduce additional incentives for biodiesel B20 as the specifications for this fuel remain unclear for vehicle assemblers.
The current retail biodiesel is called B7, blended within a range of 6.6-7% methyl ester (ME) content.
Last week, the Energy Ministry announced it was increasing the ME range to 6.8-7.2%.
Moreover, the ministry has encouraged truck operators to use B20, blended with 20% ME, since July, projecting B20 consumption of 3 million litres a month.
Toshiaki Maekawa, president of Tri Petch Isuzu, said the B20 specifications for the market have not yet been determined.
"Once there are clear specifications for B20, Isuzu can develop compatible models of Isuzu pickups and trucks in a short period of time," he said.
Mr Maekawa said the R&D for B20 vehicles will result in higher production cost for engine and parts adjustment.
"Once the government considers incentives, B20 vehicles can compete with ordinary diesel vehicles," he said.
Mr Maekawa said a lot of old Isuzu models sold to the market are not compatible with B20.
In Thailand, Isuzu is ranked the No.2 distributor. It sold 125,668 vehicles for the first nine months this year, up 5.8% from the same period last year.
All Isuzu vehicles are available with diesel engines.
"Isuzu would like to comply with the government policy and invest in R&D activities to ensure every pickup and truck in the future is compatible with B20," he said.
Isuzu understands the policy to promote B20 to relieve the oversupply of palm oil and improve the income and livelihood of farmers, said Mr Maekawa.
The government also wants to reduce dependency on crude oil and risk from oil price fluctuation.
"Isuzu believes B20 promotion will be an economic driving force in the future," he said.
