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Saturday, December 3, 2022

Tesla official entry into local Thai market drops prices and pressures other EV players

Sino-Japanese camps affected by Elon Musk’s entry into the electric car market in Thailand. Indeed on May 30, 2022, reporters reported that the whole electric car industry in Thailand was shaken when Tesla, the world’s largest electric car manufacturer of American origin, established a subsidiary in Thailand on April 25, 2022 with a registered capital of 3,000,000 baht, under the name of Tesla (Thailand) Co., Ltd. It is worth mentioning that the head of the company is the billionaire Elon Musk.

The thing that immediately affects the automotive market is the price of electric cars. Indeed, these cars are down by about 7-8 hundred thousand baht, according to the description of a news source of the automotive industry.
The Federation of Thai Industries (FTI) said that Tesla’s decision has really boosted the electric vehicle market. Currently, the gray market group must be imported from the UK or Hong Kong.

Japanese as well as Chinese automakers have been affected by both sides, including electric cars and combustion vehicles. Industry sources have analyzed that the lower prices near other brands of electric cars will inevitably be affected by the market, especially the two Chinese and Japanese brands. Even more so if it is a car that uses a pure internal combustion engine, the impact is certainly greater. Indeed, choosing to increase the tax rate on the group of combustion vehicles will make the price of motor vehicles more expensive while the trend of using electric cars has increased sequentially.

Mr. Nuttakorn Utensut, consultant on the development of the excise control system, said Tesla has registered the company’s establishment in Thailand. Tesla has not yet come to apply to join the government’s measures to support electric vehicles (EV), however, if Tesla is interested in joining the EV measures, the department is willing to negotiate to join the same camp.

Currently, the department is in discussion with 3-4 car manufacturers who are interested in joining the measures to promote the use of EVs. It is expected that the contract will be signed at the end of June 2022, which will interest the public. This will allow them to have more choices in purchasing an EV.

Author: melina

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