Tesla Eyes Southeast Asia For Expansion, But It Needs To Address Competition From BYD First
AInvestWednesday, Mar 13, 2024 3:18 am ET
1min read
TSLA --

According to reports, Tesla's Senior Director of Public Policy and Business Development, Rohan Patel, stated on March 12 that Tesla's primary mission currently is to expand into Southeast Asia. Patel also pointed out the competitive threat posed by Chinese automaker BYD in this rapidly growing market.

In recent years, Southeast Asia has emerged as one of the hottest electric vehicle markets. As consumer demand in the United States slows, Tesla can reach a large customer base in this region.

Patel said on social media platform X, Southeast Asia will undoubtedly be a major place of growth over the coming years in battery storage and electric vehicle adoption. The Malaysian government granted Tesla a license to sell cars in the country last year and stated that Tesla would also establish a charging station network in the country.

In addition, Tesla is in talks to expand its business in other Southeast Asian countries, including Thailand. Thailand is the largest car producer and exporter in Southeast Asia. Earlier this month, a Thai government official said that after Tesla surveyed a location in late 2023, the two parties discussed the issue of setting up a potential manufacturing facility.

However, Tesla's expansion plans in Southeast Asia must contend with competition from BYD, which has surpassed other competitors to achieve over a quarter of the electric vehicle sales in Southeast Asia.

Unlike Tesla's direct-to-consumer approach, BYD has collaborated with local large corporate groups. This strategy has widened BYD's reach, tested consumer preferences, and understood the complex government regulations in the region.

Data from Counterpoint shows that in the second quarter of 2023, BYD sales accounted for more than 26% of the small but rapidly growing Electric Vehicle market in Southeast Asia, compared to Tesla's approximate 8%. In the second quarter of last year, electric vehicles made up 6.4% of the region's total passenger car sales, up from 3.8% the previous quarter.


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