Thailand and Malaysia are in a race to make their auto industries the Southeast Asian regional hub for electric-vehicle production.
Chinese automaker BAIC, the world’s second-biggest producer of EVs, is working with Malaysian partner Amber Dual to have an EV assembly plant in Gurun, Kedah, operational by July 2016 at an cost of up to 300 million ringgit ($84 million).
Amber Dual Managing Director Shabudin Saman says BAIC is aiming for production of between 2,000 and 3,000 EVs next year, which will be increased as demand for EVs grows.
He says the Gurun plant, 250 miles (400 km) north of Kuala Lumpur, also will serve as a marketing center for BAIC vehicles for the Southeast Asia market as well as Malaysia.
BAIC Senior Sales Vice President Li Ji says the company is confident Malaysia will become an important EV hub in the region, as it has good infrastructure to support its growth.
In neighboring Thailand, the government and automakers are pursuing the same goal.
Thai Automotive Institute President Vichai Jirathiyut says EVs will be the new passion for the country’s automotive industry. He says government officials and stakeholders will meet June 20 to discuss an EV development plan.
Vichai tells a seminar looking at the Thai EV industry’s next decade that the military government is keen on developing EV production.
“They are welcoming all comments from automakers, auto-parts makers and state officials from the industry, science and energy ministries before mapping out the new footprint for EV promotion,” the Bangkok Post newspaper quotes him as saying.
Industry Minister Chakramon Phasukvanich has said the Board of Investment eventually will offer incentives to automakers to promote local EV production, but the newspaper says such a move may be five years away.
The Malaysian joint-venture deal was signed by the two partners at BAIC’s plant in Beijing.
Kedah Chief Minister Mukhriz Mahathir, who attended the ceremony, says BAIC is the first foreign maker of EVs to invest in Malaysia.
Mukhriz says by working with BAIC, Amber Dual will be able to penetrate the Southeast Asian market with its population of 550 million people.
Shabudin says the project began with R&D in Gurun, mainly to change the left-hand drive system to right-hand drive at the cost of about MYR50 million ($13.9 million). A prototype EV is expected to be ready in December.
Shabudin says BAIC has chosen Amber Dual to tap into Southeast Asian markets.
“Our company has also set our mind on a higher goal as we do not want to rely solely on BAIC technology,” he tells Bernama. “Instead we aim at adding value in the vehicle design. We aspire to lead Malaysia’s electric-vehicle technology.”
But Shabudin says government financial help in adopting EV technology is needed, especially in installing vehicle battery-charging facilities. “We are also working on battery technology on our own,” he adds.
