It Is Reported That Tesla Will Enter Thailand and Build A Factory in Indonesia This Year

In recent years, Tesla has been aiming to enter the Indian auto market. But Tesla had shelved plans to sell electric vehicles in India earlier this month after failing to secure lower import duties, according to the latest reports. The decision also means Tesla has ended more than a year of deadlock in talks with representatives of the Indian government. After being declined by India, recently, some media reported that Tesla is carrying out the latest expansion plan. The company has submitted an application to enter the Thai market and is building a super factory in Indonesia as soon as this year.

Tesla has submitted an application to sell its products in Thailand, according to a new document circulating on social media. However, it should be noted that although Tesla has not officially entered the Thai market, Thailand already has a considerable number of Tesla vehicles. These Tesla vehicles are privately imported by the owners (like parallel imported cars in China), which is one of the factors Tesla takes into account when considering entering new markets. In terms of scale, in 2021, vehicle sales in the Thai market exceeded 750,000 units, and it is expected to increase to 800,000-900,000 units this year. In terms of policy, in order to achieve emission reduction targets, the Thai government has introduced a series of policies to encourage the use of electric vehicles, including tax breaks and the increase of electric vehicle charging stations. The country wants pure electric vehicles to account for 50 percent of all new car registrations by 2030. It can be seen that entering Thailand is expected to bring good sales space for Tesla. Tesla may also be close to announcing a gigafactory in Indonesia as it moves into the Thai market.

Indonesian Investment Minister Bahlil Lahadalia revealed last week that Tesla had agreed to build a battery and electric vehicle factory in Indonesia, according to media reports, without providing any details. Tesla could even enter Indonesia this year if a final deal is signed soon, he said. The remarks came after the Indonesian president met with Tesla CEO Elon Musk. The latter has said that a Gigafactory project could be announced this year.

Tesla has agreed to build a new battery and electric vehicle factory in an industrial park in Central Java province, which it expects to become one of the largest in the world, reports said. Notably, the site is also close to a nickel mine. Indonesian President Joko Widodo has consistently said the country plans to become the world's largest producer of lithium-ion batteries, claiming that the country has huge reserves of nickel untapped. From a geographical point of view, Indonesia is the only country in the southern hemisphere in Asia, with a multi-faceted coastal location and developed transportation. Tesla is building a factory here, and it is expected to build a brand-new, large-scale export factory.

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