Tesla in talks with Thailand for its next manufacturing facility: Report
- With Chinese EV companies eyeing Thailand as a potential hub for manufacturing, Tesla too could come calling.
Thailand could be the next major destination on the global map for Tesla to start work on an all-new production facility. The US-based electric vehicle (EV) manufacturer is looking at expanding into newer markets and for this, it requires its manufacturing capabilities to increase manifold.
The hunt for a suitable location for the next Tesla facility has been on for some time. The company has facilities in countries like the US, China and Germany, and has confirmed that it will soon begin efforts on a new facility in Mexico. But tapping into the south and south-east Asian market better may well be priority, especially because Chinese rivals have been taking big strides in many markets here.
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Does Thailand fit the requirements? Reuters quoted an official from the office of Thai Prime Minister as saying that talks with Tesla officials are indeed underway. If these do come to fruition, the eventual facility would manufacture both EVs as well as batteries, Supakorn Congsomjit said.
Chinese EV makers are already eyeing Thailand as a major production hub for battery-powered vehicles and have committed to a total of $1.44 billion in investment.
Why Thai?
Thailand's economy largely depends on tourism, agriculture and service. And while these are expected to remain at the core of the economy, the government here wants the country to also emerge as a major hub for EV manufacturing.
The Chinese are coming in. And coming in full steam. BYD, a company challenging Tesla for the global crown in EVs, has already laid foundation stone for a facility in Rayong, some 180 kilometres away from the capital city of Bangkok. Neta is another Chinese EV company that is present here and has started production of a model - Neta V-II electric SUV - in Bangkok.
The country is luring manufacturers by offering a slew of incentives and facilities, all of which are aimed to bring in more manufacturers from foreign shores to help Thailand achieve its goal of 30 per cent of all vehicle production to be electric by 2030.
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