AUSTIN, March 13 — Tesla's expansion into Southeast Asia is a priority, a senior executive said on Tuesday, highlighting the fast-growing market where the United States (US) electric vehicle (EV) maker faces competition from China's BYD.
The region has emerged as one of the hottest EV markets in recent years and could offer Tesla a large customer base at a time when demand is slowing in the US.
"Southeast Asia will undoubtedly be a major place of growth over the coming years in battery storage and electric vehicle adoption," said Tesla senior public policy and business development executive Rohan Patel in a post on X (formerly Twitter).
He was responding to a user post that marked the first deliveries of the Model Y cars in Malaysia. The company also sells its Model 3 compact sedan in the country.
Last year, the Malaysian government gave Tesla the license to sell its cars in the country and said the firm would also establish a charging station network there.
Tesla is also in talks about expanding its operations in other countries, including Thailand, Southeast Asia's largest car producer and exporter.
Earlier this month, a Thai government official said the company had discussed a potential production facility after surveying a site late in 2023.
Still, Tesla's ambitions for Southeast Asia will have to contend with competition from BYD, which has shot past rivals to account for more than a quarter of the EVs sold in the region.
In contrast with Tesla's direct-to-consumer approach, BYD has partnered with large, local conglomerates, which has allowed the carmaker to expand its reach, test consumer preferences and navigate complex government regulations in the region.
The Chinese EV maker sold more than 26 per cent of all cars in Southeast Asia's small but fast-growing EV market in the second quarter of 2023, while Tesla accounted for about eight per cent, according to Counterpoint.
EVs constituted 6.4 per cent of all passenger vehicle sales in the region in the quarter, up from 3.8 per cent in the preceding quarter.
— Reuters
