Downstream preparation and local ancillary needed for Malaysia’s expanding automotive and electronic vehicle ecosystem
Amid significant injections into the Malaysian Automotive market, the helping hand of collaborative robots can help sub-sector players deal with newly accelerated peaks in manufacturing By Marvin Ming, Country Manager Malaysia, Universal Robots Malaysia has taken a major leap forward in its quest in becoming the region’s automotive and EV hub, with industry leaders Tesla choosing the nation to be its regional headquarters. This deal comes amid an injection of Electric Vehicle (EV) related investments stemming from 2018, with the Malaysian Investment Development Authority (MIDA) approving 58 EV investment projects totaling RM 26.2 billion. Currently, the country has nearly 1,000 EV charging stations and plans to build a further 10,000 across the country by 2025, with this investment aimed at covering vehicle assembly along with the manufacturing of EV parts and charging components. Malaysia does seem to be shaping into the region’s automotive hub and EV hub, but is the nation ready for the increased demands this entails? It is paramount that sub-sector players in Malaysia have to make downstream preparation for the strain on the industry this impending transformation is going to bring about. Becoming the Region’s Automotive Hub According to reports, the Asia-Pacific EV market was valued at US$230 billion in 2021 and is expected to reach US$778 billion come 2027. The recent Tesla announcement is not the only factor in the sector’s increased value, as three major Chinese automotive players – BYD, Great Wall Motor, and Cherry, have also launched in Malaysia this year. Additionally, Malaysia is also home to other international automotive companies and assembly plants, with the likes of Porsche, BMW, and Mercedes-Benz all manufacturing within the country. Equipped with the existing expertise in manufacturing, Malaysia’s components sub sector could potentially be used to double up in servicing the projected automotive exploits, covering a […]