# Tesla to expand in Thailand amid 380% increase in electrical vehicle registrations

- Link: https://www.thailand-business-news.com/companies/129794-tesla-to-expand-in-thailand-amid-380-increase-in-electrical-vehicle-registrations
- Published: 2024-03-07T09:31:38+07:00
- Author: J. Allan

Tesla is in talks with the Thai government to build a new factory for manufacturing
and exporting electric vehicles, as part of its expansion plans in Thailand.

## Key Takeaways

 * Tesla plans to expand its presence in Thailand and is negotiating with the government
   to establish a new factory for producing and exporting electric vehicles in the
   region.
 * Thailand has experienced a significant increase in electric vehicle registrations,
   with a 380% growth in new registrations for electric cars in 2023 compared to
   the previous year.
 * The Thai government is actively promoting investment in the electric vehicle 
   industry, partnering with global automakers and setting ambitious goals for the
   share of zero-emission EVs in domestic vehicle production by 2030.

According to Prommin Lertsuridej, secretary general to the prime minister, the company
is negotiating with the Thai government to establish new factory in Thailand 

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The official revealed that the Thai government has proposed a 100% green facility
for Tesla, where the company will be able to produce and export its vehicles to 
other regional markets. The official also added that the company is in talks; no
deal has been finalized yet.

Prommin said Tesla’s potential expansion into Thailand could boost the country’s
EV industry and create more employment and investment opportunities. 

## Thailand’s electric cars landscape

Thailand is a major hub for the automotive industry in Southeast Asia, hosting many
global car makers such as Toyota, Honda, Nissan, and Ford. The country also offers
various incentives to electric vehicle (EV) makers, such as tax breaks, low-interest
loans, and free land.

Last month, the Electric Vehicle Association of Thailand (EVAT) published a summary
of the EV landscape, showing the progress and growth of electric mobility in the
country.

The summary showed that the number of new registrations for Battery Electric Vehicles(
BEVs) in electric cars reached 76,366 units in 2023, up from 9,678 units in the 
previous year. In total, new registrations for EVs of different types increased 
to 100,219 units in 2023, showing a growth of 380% compared to the 20,816 units 
registered in 2022.

The BEV car category demonstrated significant growth, increasing from 32,081 units
in 2022 to 131,856 units in 2023, representing a 311% growth. 

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During the last few years Tesla has grown its global presence, with factories in
the United States, China, and Germany. The company also plans to enter the Indian
market, where it has registered a local subsidiary.

Thailand is one of [the leading countries in Southeast Asia for electric vehicle (EV)](https://www.thailand-business-news.com/business/115602-thailand-gears-up-to-make-a-significant-impact-in-the-zero-emission-vehicles-zev-sector)
sales and production. The country has set an ambitious goal to increase the share
of zero-emission EVs to 30% of all domestic vehicle production by 2030.

The government has partnered with several global automakers to promote investment
in Thailand’s EV industry. For example, Toyota has announced plans to produce hybrid
electric vehicles and batteries in Thailand, with an investment of 19 billion baht(
about $570 million).

GAC Aion, BYD, and Hozon Auto from China have also set up plants in Rayong Province,
with a combined capacity of 150,000 vehicles annually. These investments will help
Thailand develop a local supply chain for EV components, especially batteries, which
are crucial for reducing the costs and increasing the performance of EVs.