Tesla Inc. will sell its electric cars in Malaysia to tap into the rising foreign demand for EVs in the Southeast Asian.
(Bloomberg) — Tesla Inc. will sell its electric cars in Malaysia to tap into the rising foreign demand for EVs in the Southeast Asian.
Elon Musk’s electric vehicle pioneer will set up an office in Malaysia, introduce service centers and build a network of superchargers, the trade ministry said in a statement Wednesday after approving Tesla’s application to import EVs.
Malaysia is focusing on the development of an EV ecosytem and has offered incentives to boost adoption. The country has a target of having EVs, including hybrids, account for 15% of the total industry volume by 2030. Fitch Solutions last month said it expects EV sales in the Southeast Asian nation to expand 82% in 2023 — albeit from a low base — to about 5,840 units.
The incentives, which include exemptions to import duties on completely built-up EVs, have lured automakers to Malaysia. China’s BYD Co. in December said it would bring its flagship Atto 3 model and the extended-range version to the country. Mercedes-Benz AG last month introduced its first locally made EV in Malaysia, according to Fitch.
Southeast Asia has become a new battleground for EVs as automakers look beyond their home market for further expansion, with BYD and South Korea’s Hyundai Motor Co. finalizing deals to invest in Indonesia, the region’s largest economy.Â
Annual passenger EV sales in the six largest economies in the region exceeded 51,000 units in 2022, compared with just 16,000 in 2021, according to BloombergNEF, with sales projected to top 70,000 this year.
(Updates throughout.)
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