Tesla launches electric cars in THIS Asian country while India debut remains unclear

The launch of Tesla vehicles in Thailand was made possible because of the tax breaks and subsidies provided by the government to the American Electric vehicle manufacturer.

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Tesla Inc. introduced two electric vehicles (EV) models in Thailand, marking its entry into the market that Japanese automakers have long controlled on December 7. Two electric vehicles are now available, with costs ranging from 1.7 million Thai Baht (around Rs 40 lakh) to 2.5 million Thai Baht (around Rs 58 lakh). Thailand is promoting EV use and manufacturing by providing tax breaks and subsidies. At the same time, Tesla's entry into the Indian market is still under doubt because of the differences with the Indian government on taxes.

The U.S. automaker plans to start selling its EVs in Southeast Asia's second-biggest economy via online channels, with deliveries set to start early next year. But it faces stiff competition from Chinese brands like BYD and Great Wall Motors, which have set up showrooms and distribution partners in recent years to reach customers and offer EVs with prices starting at 800,000 baht (around Rs 18 lakh).

Tesla did not provide details on sales targets. Thailand is Asia's fourth-largest auto assembly and export hub for companies like Toyota Motor Corp and Honda Motor Co Ltd. It produces about 1.5 million to 2 million vehicles annually, of which about half are exported. Fuel-based vehicles, especially by Japanese brands, still dominate the market. EV uptake has been gradually gaining momentum, with about 7,000 new battery EVs registered in the first ten months of 2022, according to Thailand Automotive Institute, up from 2,000 last year.

Customers who showed up to Tesla's launch in a luxury mall in central Bangkok said they were were interested in the new cars being offered. "I'm excited that a big company is selling directly to the customers without going through the dealers," said office worker Thitipun Paisirikul, 36, adding he expected the re-sale value of the car would be high.

The government wants at least 30% of vehicles produced in the country to be electric by 2030. This year, state-owned energy firm PTT Group announced a $1 billion joint venture with Taiwan's Foxconn to produce EVs in Thailand.(Production: Artorn Pookasook, Kwang Jiraporn Kuhakan)

With inputs from agencies