Tesla has used components from about 45 Malaysian suppliers, also involves technology transfer

The Ministry of Investment, Trade, and Industry (MITI) has revealed that Tesla currently collaborates with approximately 45 Malaysian suppliers, either directly or indirectly, contributing to technology transfer and strengthening the local automotive ecosystem. These partnerships primarily involve the supply of semiconductor components, machinery inspection, and factory automation systems, according to a Bernama report.

Although Tesla has not committed to assembling its vehicles locally, MITI stated that discussions are ongoing through the Malaysian Investment Development Authority (MIDA) to explore the possibility of the carmaker incorporating more Malaysian-made components into its manufacturing processes.

This was revealed in response to Pendang MP Datuk Awang Hashim's query about the government’s strategy following reports that Tesla had outright abandoned plans to establish factories in ASEAN countries, including Malaysia, despite numerous attempts to woo the American EV maker.

MITI, in our defence, emphasised that Tesla’s presence in Malaysia underscores the carmaker’s confidence in the local electric vehicle (EV) market and the government’s supportive EV policies.

“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 stated in a written post on the Parliament’s website today.

Tesla entered the Malaysian market in 2023 under the BEV Global Leaders AP program, designed to attract leading battery electric vehicle (BEV) manufacturers to invest in Malaysia. To participate, Tesla was required to meet several conditions, including installing at least 50 ultra-fast chargers (over 180 kW), ensuring 30% of these chargers are accessible to non-Tesla users, and collaborating with at least 10 local firms to advance EV charging technology.