SOUTHEAST ASIA: MALAYSIA REPORT
Malaysian state-owned carmaker Proton is considering building an EV plant in Thailand, according to reports from Thailand government officials. The Thai government has long focused on promoting related industries.
At a joint press conference with the Prime Minister of Malaysia, where he is visiting, the Thai Prime Minister said, “I hope we can confirm clear steps to invite the plant and proceed quickly,” and indicated that he plans to work out the details with the parties involved soon. The amount of investment and production capacity were not disclosed.
Proton was established in 1983 as a national policy to revive Malaysia’s automotive industry. Currently, the company is rushing to switch to EVs after receiving an investment from Geely, a private Chinese automotive giant.
The Thai government is working to attract EV factories by offering subsidies of up to 150,000 baht (about $4,100) for EVs priced at 2 million baht (about $55,000) or less, with local production starting in 2024.
Chinese manufacturers have a large presence in the Thai EV industry: BYD accounts for 30% of EV sales in Thailand and plans to build an EV plant in the eastern province of Rayong; SAIC Motor and GWM also plan local production.
Source: The Nikkei
PSR Analysis: It is well known that many countries in Southeast Asia have positioned the automotive industry as a pillar of their manufacturing industries and have attracted foreign investment, many of which have come from Japan. The proportion of Japanese cars is still very high in some countries and regions. Europe and the U.S. have taken a step back to observe Southeast Asia, considering the time and cost required to establish a local supply chain and sales network.
However, some have expressed concern about China’s aggressive investment in such markets. They see Southeast Asia as having to choose between the liberal economies of Japan and the United States and the control-oriented economy of China.
But the reality is not so simple. Southeast Asian countries have strong feelings about their own brands, such as Vietnam’s VINFAST. They can be a symbol of economic development. Proton has had its ups and downs, but it has been successful and has maintained a certain market share in Malaysia, and if it can successfully adapt to the EV shift, there is a good chance that Proton will have success in Thailand, the kingdom of the automotive industry in Southeast Asia. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
