00:00The Malaysian automotive industry has been cautioned against emulating Thailand in its
00:05strategy of rapid price cuts to expand its electric vehicle segment. According to the
00:10Malaysian automotive component parts manufacturers, such a strategy could lead to an imbalance that
00:15may curtail future growth. Its president, Chin Jitsin, said Thailand's EV sector had already
00:21begun to strain its supply chain and market stability with policy revisions driven by a
00:26mismatch between rapid supply growth and weak market demand. He said generous incentives and
00:31aggressive price competition have led car manufacturers in Thailand to accelerate EV
00:36production and imports to a point where domestic demand is no longer able to absorb the inventory.
00:43The Thai policy on EV, which includes tax incentives and price subsidies, has, over the years,
00:49attracted over US$4 billion in investments from BYD and Great Wall Motors, China's biggest
00:54players in the EV sector. Sunway Business School lecturer Imthias Hossein said, while subsidies
01:00and tax incentives had led to strong investment inflows and driven rapid growth, especially for
01:06Chinese EV manufacturers in Thailand, demand had not kept pace. He said this suggests a price-led
01:12expansion model may be unsustainable without adequate demand, infrastructure and export diversification,
01:18as oversupply can trigger price competition, shrinking margins, higher inventory costs,
01:23and broader supply chain instability.
01:26Dhani Sharjir Reza, FMT
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