Tesla and BYD have achieved global dominance thanks in part to China, the world’s largest market for electric vehicles. But as China’s economy slows, the two electric vehicle giants are now looking overseas for new growth opportunities. Tesla, which first sparked a bitter price war in China last year, is now eyeing neighboring Southeast Asia as its next opportunity.
Southeast Asia “will be the primary location for growth in battery use for electric vehicle adoption in the coming years,” Rohan Patel, senior executive director for public policy and business development, wrote in an article. post X on Tuesday.
The head of Tesla responded to a user’s message about the first deliveries of the Tesla Model Y to the Southeast Asian country of Malaysia.
Last year, Malaysia granted Tesla a license to sell in the country. The US-headquartered electric vehicle maker has also opened a head office, service center and experience center in the Malaysian state of Selangor and pledged to invest in a network of fast charging stations across the country.
Tesla also in negotiations together with Thailand, the largest automobile manufacturer and exporter in the region, will build a production facility in the country.
Indonesia is also inviting Tesla to set up a base in the country where it stores huge reserves of nickel, a component used in some electric vehicle batteries. Indonesian President Joko Widodo even paid a personal visit to Tesla CEO Elon Musk at the SpaceX launch site in Texas in 2022.
However, Tesla may be racing against time to establish itself as the dominant EV player in Southeast Asia. Chinese electric vehicle giant BYD, which late last year overtook Tesla in battery electric vehicle sales, is also trying to tap into a small but fast-growing market.
BYD sold 26% of all electric vehicles in Southeast Asia, compared with 8% for Tesla in the second quarter of last year, according to data. Reuters with reference to Counterpoint Research. The Chinese electric vehicle maker was the top-selling electric vehicle brand in Thailand. Malaysia And Singapore last year.
BYD is also expanding its production in Southeast Asia. Electric vehicle manufacturer broke the ground at its first car plant in Thailand in March last year. The plant, which BYD expects to begin operations this year, will have an annual capacity of 150,000 vehicles, targeting both the domestic and export markets.
BYD is also investing $1.3 billion to build a plant in Indonesia, a senior Indonesian government official said at BYD’s launch event in early January.