According to minister of investment, trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Tesla’s potential move to establish a manufacturing plant in Malaysia remains under discussion. It was a previously reported in August last year that Tesla had cancelled plans to set up an EV factory in Thailand, Malaysia or Indonesia.
Speaking in the Dewan Rakyat yesterday, Zafrul said the electric vehicle (EV) maker may evaluate commercial viability amid intensifying competition in both regional and domestic markets, reports The Edge. He reiterated that Malaysia’s initial engagement with Tesla in 2023 primarily focused on setting up EV-related infrastructure, such as charging stations and sales operations, while plans for a manufacturing plant are still being deliberated.
“Several other Southeast Asian countries are also seeking to attract Tesla, but competition from other EV brands is affecting their efforts,” Zafrul said. “To my knowledge, Tesla currently has only one manufacturing plant in Asia (located in China). Any decision to set up a plant in Malaysia will ultimately hinge on the company’s commercial outlook,” he added.
The influx of Chinese EV makers has placed pressure on Tesla’s ability to hit sales targets, with Zafrul saying rival brands are offering “more affordable and technologically advanced EV models.”
Tesla is a beneficiary of MITI’s BEV Global Leaders programme, which sets specific requirements that any foreign EV maker must meet in order to expand its footprint in Malaysia. Within three years of approval, a company must set up an office, sales and service centers in Malaysia.
It must also install at least 50 units of DC fast chargers with minimum charging power of 180 kW, and at least 30% (15 units) of these chargers must be open for the public to use, including those with EVs from other brands. Additionally, the company must cooperate with at least 10 local companies and use local contractors for local charging networks.
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