Tesla may choose Thailand to start work on the new manufacturing facility. The US-based electric vehicle (EV) maker is looking to expand into new markets. And for this it needs to increase its manufacturing capabilities manifold.
The search for a suitable site for Tesla’s next plant has been going on for some time. The company has plants in countries like America, China and Germany. And it has confirmed it will soon begin efforts for a new plant in Mexico. But gaining a better foothold in the South and South-East Asian markets may be a priority. Especially because Chinese rivals are making big progress in many markets here.
Does Thailand meet the needs of US EV giants? According to media reports, an official from the Thai Prime Minister’s Office said that negotiations with Tesla executives are indeed ongoing. Supakorn Kangsomjit said that if these talks are successful, the plant here will manufacture both EVs and batteries.
Chinese EV makers are already eyeing Thailand as a major production hub for battery-powered vehicles. and has committed to a total investment of $1.44 billion.
Why Tesla In Thailand?
Thailand’s economy depends largely on tourism, agriculture and services. And while they are expected to remain at the core of the economy. The government here wants the country to emerge as a major center of EV manufacturing.
The Chinese are coming and in full swing. BYD, the company challenging Tesla for the global crown in EVs, has already laid the foundation stone for a plant in Rayong, about 180 km from the capital Bangkok. The leader is another Chinese EV company present here. And it has started production of the model leader V-II electric SUV in Bangkok.
Thailand is wooing manufacturers by offering various incentives and facilities. The aim of which is to bring more manufacturers from abroad into the country. So that Thailand can achieve its target of making 30 percent of all vehicle production electric by 2030.
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