Tesla and BYD surged to world-dominating heights thanks in half to China, the world’s largest EV market. However with the tempo of Chinese language progress slowing down, the 2 EV giants at the moment are trying abroad for extra progress alternatives. Tesla, which first triggered a fierce worth warfare in China final yr, now sees the close by area of Southeast Asia as its subsequent alternative.

Southeast Asia will “be a major place of growth over the coming years in battery storage in electric vehicle adoption,” Rohan Patel, a senior public coverage and enterprise growth govt, wrote in an X post on Tuesday.

The Tesla govt was responding to a consumer’s submit commemorating the primary deliveries of Tesla’s Mannequin Y automobile in the Southeast Asian nation of Malaysia.

Malaysia granted Tesla a license to promote in the nation final yr. The U.S.-headquartered EV maker additionally established a head workplace, service hub and expertise middle in the Malaysian state of Selangor, and promised to speculate in a community of quick charging stations throughout the nation.

Tesla is additionally in talks with Thailand, the area’s the area’s largest producer and exporter of automobiles, to construct a manufacturing facility in the nation.

Indonesia is additionally courting Tesla to arrange a base in the nation, which holds huge reserves of nickel, a part used in some EV batteries. Indonesian President Joko Widodo even paid a private go to to Tesla CEO Elon Musk on the SpaceX launch website in Texas in 2022.

But Tesla might be racing in opposition to time to ascertain itself as a dominant EV participant in Southeast Asia. Chinese language EV large BYD, which overtook Tesla in battery EV gross sales on the finish of final yr, is additionally making a play for the small, however fast-growing market.

BYD offered 26% of all EVs in Southeast Asia, in comparison with Tesla’s 8% in the second quarter of final yr, in line with Reuters citing Counterpoint Analysis. The Chinese language EV maker was the highest promoting EV model in Thailand, Malaysia and Singapore final yr.

BYD is increasing its manufacturing in Southeast Asia as effectively. The EV maker broke ground on its first Thai auto plant final March. The plant, which BYD expects will begin operations this yr, may have an annual capability of 150,000 autos, destined for each home and export markets.

BYD is additionally investing $1.3 billion to construct a manufacturing unit in Indonesia, in line with a senior Indonesian authorities official at a BYD launch occasion in early January.