Tesla hits planning challenge in effort to build Thai factory
US-based automaker Tesla’s plan to set up an electric car factory in Thailand faces potential delay due to a city planning challenge.
Prime Minister Srettha Thavisin led his team to hold discussions with Tesla executives at the company’s headquarters last November 14.
In the first quarter of this year, Tesla is expected to announce whether it will set up a factory in Thailand, according to the Prime Minister.
A source told one of the Nation Group’s media outlets, Thansettakij, that Tesla followed up the US meeting with Srettha by visiting potential locations for building a factory.
However, the automaker learned that building a factory on a 2,000-rai (320 hectare) plot of land would be difficult due to insufficent availability of land under the government and private agencies.
"This is an issue because it takes 1,000-2,000 rai of land to set up an industrial estate,” according to a source, who added that Chinese automaker BYD was able to avoid this problem as it used only 600 rai (96 hectare) to set up its factory.
Tesla is considering a land parcel in Bangkok’s Lat Krabang district, but it remains to be seen whether a deal could be closed without triggering issues over city planning.
Government House has reported that Srettha has ordered Industry Minister Pimphattra Wichaikul to hold talks with the Interior Ministry’s department of public works and town and country planning as it deals with issues of industrial city planning.
This move came after investors complained of a lack of support for projects that involve industrial city planning since late last year.
“For instance, a Japanese investor proposed digging a canal but faced resistance from communities,” Government House explained. “Moreover, Tesla wants up to 2,000 rai of land if they were to invest in electric car production, but city planning doesn’t support that.”
