Tesla Launches Two EV Products in Thailand to Shift the Domination of Chinese Manufacturers

Tesla has officially sold EVs in Thailand. (photo: twitter @tesla)

JAKARTA - Tesla Inc unveiled two electric vehicle (EV) models in Thailand on Wednesday, December 7, marking its first foray into the Southeast Asian automotive hub that has long been dominated by Japanese manufacturers.

The launch of the two EVs with prices ranging from 1.7 million baht to 2.5 million baht (IDR 750 million to IDR 1.11 billion) comes as Thailand encourages the adoption and production of EVs by offering tax cuts and subsidies.

The US automaker plans to start selling its EVs in the market of Southeast Asia's second-largest economy via online channels, with deliveries set to begin early next year. They will face stiff competition from Chinese brands such as BYD and Great Wall Motors, which have set up showrooms and distribution partners in recent years to reach customers and offer EVs starting at 800.000 baht ($300,000).

Thailand is Asia's fourth-largest auto assembly and export center for companies such as Toyota Motor Corp and Honda Motor Co Ltd. Thailand produces around 1.5 million to 2 million vehicles annually, about half of which are exported.

Fossil fuel-based vehicles, especially those made by Japanese brands, still dominate the market and EV use is gradually gaining momentum, with around 7,000 new battery EVs registered in the first ten months of 2022. According to the Automotive Institute of Thailand, this number is up from 2,000 last year.

Customers who attended Tesla's launch at a luxury mall in downtown Bangkok said they were intrigued by the new car on offer.

"I'm happy. The price difference is not significant (from other EV brands)," said Thitipun Paisirikul as quoted by Reuters. According to the 36-year-old office worker, he estimates that the resale value of the car will be high.

Reuters reported that the Thai government wants at least 30% of vehicles produced in the country to be electric cars by 2030.

State-owned energy company PTT Group this year announced a $1 billion joint venture with Taiwan's Foxconn to manufacture EVs in Thailand.