Tesla again teases ASEAN region expansion plans to chase BYD's lead
Arvind · Mar 15, 2024 11:30 AM
0
0
Tesla has expressed interest in further investments and expansion in the ASEAN region.
This is part of the company's broader strategy to tap into the BEV growth in ASEAN markets as growth in China and the US have slowed. However, it will face stiff competition from BYD which has so far led the BEV market in the region.
Rohan Patel, Senior Public Policy and Business Development Executive recently posted on X "Southeast Asia will undoubtedly be a major place of growth over the coming years in battery storage and electric vehicle adoption."
Separate reports earlier this month also confirmed that Tesla has been in talks with the Thai Government about a potential local assembly (CKD) plant after surveying a site late in 2023.
This was followed by Thai Prime Minister Srettha Thavisin’s visit to Tesla USA in Nov 2023, where he posted on X, “Great discussion on the future collaborations on BEV & Clean Energy. It is my hope that this collaboration will cement Thailand as the hub for BEV and renewable energy in the years to come.”
Thai-PM Srettha Thavisin’s visit to Tesla Fremont in the US. Image
If realised, this will be Tesla's first assembly plant in the ASEAN region, where Tesla could follow in the footsteps of GWM which became the first company to locally assemble a BEV in Thailand, having started rolling out its Ora Goodcat BEV in January 2024.
Separately, BYD and BMW have also announced investments of RM 2.3 billion and RM 211 million respectively to start local assembly in Thailand as well.
Like GWM, BYD and BMW, Tesla will also be looking to take advantage of lucrative BEV subsidies that require CKD assembly in the longer term.
The latest phase of BEV subsidy packages granted by the Government, known as EV 3.5, comes into effect for 4 years, between 2024 and 2027, where the Government will provide purchase subsidies for electric cars, pick-up trucks, and motorcycles based on vehicle type and battery capacities.
These include subsidies ranging between THB 50,000 (~RM 6.6k) and THB 100,000 (~RM 13.2k) for passenger cars under THB 2 million (~RM 265k) and THB 100,000 (~RM 13.2k) subsidies for locally-assembled (CKD) BEV pick-up truck purchases. These incentives also include reductions in import duties (of up to 40% in 2024 and 2025) and excise tax (from 8% to 2%).
However, all companies must offset with BEV production domestically at a 1:2 CBU/CKD ratio by 2026 and 1:3 by 2027 to qualify.
Arvind can't remember a time when he didn't wheel around a HotWheels car. This love evolved into an interest in Tamiya and RC cars and finally the real deal 1:1 scale stuff. Passion finally lead to formal training in Mechanical Engineering. Instead of the bigger picture, he obsesses with the final drive ratio and spring rates of cars and spends the weekends wondering why a Perodua Myvi is so fast.
