Striving to become "Asia's Detroit," Thailand is calling on Japanese automakers to build hybrids and other fuel-efficient cars there, but political uncertainties are causing concern in the industry.
Bangkok is sweetening the deal by offering tax breaks to automakers which set up plants to make environmentally friendly vehicles.
Japanese manufacturers have adopted a wait-and-see attitude, worried about where Thailand may be headed. In September, a bloodless coup brought down the government of Prime Minister Thaksin Shinawatra, who is accused of corruption and abuse of power.