Prime Minister Confirms TESLA Executives Visit Thailand, Talks on Possible Investment

Dec 12, 2023 03:57 AM EST

BANGKOK THAILAND BIRD'S EYE VIEW AT NIGHT — (Photo : PEXELS/allPhoto Bangkok)

Thailand's Prime Minister Srettha Thavisin officially confirmed that executives from the renowned electric vehicle giant, Tesla, paid a visit to Thailand to explore potential investment opportunities. Furthermore, the Prime Minister said that he personally played a key part in making the visit possible and that he was sure that Tesla would be interested in investing in Thailand.

TESLA Looking on New Grounds

During their visit, Tesla executives were shown various industrial estates in Thailand, with the intention of identifying a suitable location for their potential investment. Notably, they were specifically seeking an extensive land area of approximately 2,000 rai (equivalent to 320 hectares) for their envisioned venture.

This recent development is reported by Tyler Morning Telegraph. It's worth noting that this isn't the first interaction between Prime Minister Srettha and Tesla, as they had previously met following his assumption of office in August.

Thailand makes and exports more cars than any other country in Southeast Asia, making it a major player in the automotive business in the region. Established Japanese manufacturers such as Toyota and Honda already have substantial facilities in Thailand, producing vehicles both for the domestic market and export to neighboring Southeast Asian countries and beyond.

Thailand's Vision: EV Dominating the Roads

Thai officials want to make electric vehicles (EVs) about a third of the 2.5 million vehicles they make every year by the end of this decade. This is part of their bold plan to make all of their vehicles electric. The Thai government wants to encourage the transformation of local industries by putting in place a number of benefits.

According to Electrek, Tesla is actively exploring the possibility of securing a substantial land parcel for a manufacturing facility in Thailand, as indicated by the Prime Minister following the visit of Tesla executives. Although Tesla temporarily halted its plans for Gigafactory Mexico, the company is actively scouting for potential factory locations to kickstart operations once the economic conditions stabilize.

Countries like Canada, India, and now Thailand have emerged as prospective destinations for Tesla's expansion.

Thailand Attracts Investors

Tesla's presence in Thailand became official only recently, with orders initiated last year and deliveries commencing this year. Thoughts about opening a plant in Thailand are growing stronger, and high-level talks are happening. The reported size of the land Tesla is seeking, approximately 800 acres in an industrial zone, suggests the potential establishment of a substantial manufacturing facility in Thailand.

Also, Tesla's entry into the Thai market could have a big effect, especially since Thailand's car industry is growing quickly. As reported by Reuters, Southeast Asia's second-largest economy holds a dominant position in car production and export within the region, with established Japanese manufacturers like Toyota, Isuzu, and Honda enjoying decades of industry leadership.

With the help of incentives and efforts to encourage investment, Thailand has set the lofty goal of turning a big chunk of its annual vehicle production into electric cars by 2030. EV adoption in Thailand has been on the rise, spurred by government subsidies, reaching up to 150,000 baht per car. In the second quarter, Thailand accounted for approximately half of all EV sales in Southeast Asia.

Also, Thailand's lower taxes and government subsidies have attracted a number of Chinese automakers, such as BYD and Great Wall Motor, which have promised to spend a total of.44 billion in new factories in Thailand.