Tesla making a comeback in Singapore

Singapore

TESLA Motors is aiming to make a comeback in Singapore by introducing its cars and charging infrastructure here.

The Business Times understands that executives from the Nasdaq-listed American electric car maker have been in town recently to meet up with government representatives and the company has also hired recruiting staff in Singapore.

It is also believed to be on the lookout for executives in other functions to work out of its Singapore office in the new central business district.

When approached by BT, a Tesla spokeswoman would only say that it is "planning to introduce" the Model 3 to the Singapore market, which has been announced by Tesla chief Elon Musk. In the United States, the Model 3 retails at US$35,000. The retail price and release date for Singapore have yet to be announced.

If a Tesla car is exported to markets where the company has no service centre, the car's warranty would be void. So for a Tesla service centre to open here, it would have to be Tesla owned and operated, as the carmaker works on a direct sales business model. This means that no franchise or distributor licence will be given, BT understands.

Tesla currently has no store or service centre in South-east Asia.

To a question on if and where Tesla would set up charging infrastructure for its cars here, the spokeswoman responded: "Absolutely. As in all of our markets, we will work with the local governments and partners to provide public charging for Tesla owners. Our priority will be to place charging facilities in locations which are convenient for owners and which match their lifestyles."

Tesla's foray into the Singapore market has had starts and stops. In early 2011, it closed its office in Suntec - just six months after opening. Poor reception to the Tesla Roadster and failing to secure tax incentives were reported to be reasons for that departure.

However, even though Tesla left then, BT understands that it was soon back in late 2013, setting up a new office. This was a few months after a Carbon Emissions-Based Vehicle Scheme (CEVS) was implemented here.

But a recent furore over an imported used Tesla Model S getting slapped with a surcharge threw open hard-hitting questions on the potential for its cars here. However, a brand new imported Model S, qualifying for S$10,000 of rebates, is expected to hit the roads soon.

In her response to BT this time, the Tesla spokeswoman was upbeat about the potential that the Singapore market has for Tesla.

"We believe that Singapore can potentially serve as a beacon city for electric vehicle adoption in South- east Asia - just like what Hong Kong did for the rest of Greater China," she said.

Tesla's assessment of Singapore's market potential comes as the government here has been encouraging the use of electric vehicles.

The government is looking to install 2,000 charging points across the island as part of an electric car-sharing programme. Electric taxis will also soon be running on the roads, with electric buses to follow.

Tesla has shown interest in the Singapore market over the years. Its continued interest in the Republic is strategic, as it is a market that a global company like Tesla cannot pass on, said Hannah Chang, assistant professor of marketing at Singapore Management University.

"Singapore is a bellwether, particularly for South-east Asia, in terms of policy, economy, innovation. And it's very important for a premium brand like Tesla to be seen as successful here," she said.

Having a premium electric car maker like Tesla here will also help Singapore's image as a clean and green city, said Ashish Sethia, head of India and South-east Asia for gas and power at Bloomberg New Energy Finance.

Therefore, said Mr Sethia, smoothening out policy hiccups and facilitating Tesla's entry into Singapore is important.

"There is scepticism in general that electric vehicles don't really work. Having a high-profile brand like Tesla here will create consumer awareness, and benefit the electric and hybrid vehicle industry as a whole," he said.

READ MORE: Another Tesla comes to town, powered by S$10k rebates