TESLA USING COMPONENTS FROM LOCAL SUPPLIERS, INVOLVED IN TECHNOLOGY TRANSFER -- MITI

KUALA LUMPUR, Nov 21 (Bernama) -- US electric vehicle (EV) maker Tesla has used components from about 45 local suppliers directly or indirectly to date, which also involves technology transfer to the suppliers, according to the Investment, Trade and Industry Ministry (MITI).

The local producers are used mainly for the provision of semiconductor components, machinery inspection and factory automation system, it explained.

“Although Tesla has never given any commitment to undertake local assembly for its vehicles, MITI, through its agency Malaysian Investment Development Authority, is always discussing the potential of Tesla using the local supply chain for its manufacturing components,” MITI said in a written reply posted on the Parliament’s website today.

The ministry was responding to a query from Datuk Awang Hashim (PN-Pendang) on the government’s stance and strategy following reports that Tesla has scrapped plans to build factories in ASEAN countries, including Malaysia.

MITI said Tesla’s presence in the Malaysian market demonstrates Tesla’s confidence in the local EV market as well as in policies promoting EVs implemented by the government.

The government, it continued, will continue striving to attract foreign and local investors in the automotive and related sectors to carry out operations in the country.

“This move will help boost the local supply chain’s capabilities and promote automotive component localisation activities,” it added.

Tesla’s entry into Malaysia in 2023 was through the BEV Global Leaders AP programme, which was established specifically to attract multinationals that are top battery electric vehicle (BEV) producers to set up business and invest in Malaysia. 

Several conditions were imposed on Tesla to participate in the programme, including the commitment to instal at least 50 ultra-fast chargers with capacity exceeding 180 kilowatts, ensure at least 30 per cent of the ultra-fast chargers are open for public use for EV brands other than Tesla, and cooperate with at least 10 local firms to develop the EV charging technology here.

-- BERNAMA