After months of delay Volkswagen AG has been granted permission from the Thai government to build a manufacturing plant near Bangkok for fuel efficient cars.

According to Reuters, a Volkswagen spokesperson stated that they have received the go-signal from the Thai government. Despite this the automaker is reportedly still assessing the circumstances and whether to proceed with the aforementioned factory.

Based on previous reports collected by Reuters, the EUR 1 billion facility (about PHP 50.25 billion) is intended to build fuel-efficient 1.4-liter gasoline engines and produce up to 300,000 vehicles per year at full capacity.

Other sources close to the matter also told the news agency that Volkswagen had already applied with the Thai government last April as they learned about the tax breaks that are available in the country.

As of this writing, there are only two Volkswagen factories present in Southeast Asia with one located in Malaysia wherein it produces the Passat, Polo and Jetta nameplates. There is another factory in Indonesia.

Source: Reuters