DYSON to open a plant in Singapore to build electric cars
- 25th October 2018 by SGDriver
DYSON has decided to build its new electric cars in Singapore instead of in the UK.
The firm had considered opening the new “advanced automotive manufacturing” in the UK but ultimately decided to open it in the Asian country instead. The plant is expected to be completed by 2020 at a cost of nearly SGD 3 billion, with the launch of it first electric vehicle (EV) in 2021.
DYSON will be joining a growing list of car firms moving towards EVs.
James Dyson, a strong Brexit-eer, decision to open the manufacturing plant in Singapore could be viewed as controversial with the jobs now heading to Singapore.
Let’s look at the reasons that were probably behind this controversial decision.
1.Singapore also offers access to high-growth Asian markets as well as an extensive supply chain and a highly skilled workforce that is second to none. DYSON chief executive, Jim Rowan, is quoted as saying: “The decision of where to make our car is complex, based on supply chains, access to markets, and the availability of the expertise that will help us achieve our ambitions.
2.DYSON wants to follow rival Tesla to the biggest market, China and Singapore is the perfect launching pad into the market. Singapore, being one of the world’s busiest ports on its doorstep, Dyson can roll a car off the production line in Singapore, and within the hour, it can be on its way to China or other sizable electric vehicle markets like South Korea or Japan.
3.DYSON has already a footprint and a team in Singapore. Singapore has a comparatively high cost base, but also provides great technology expertise and focus.
4.Singapore has an extensive free trade agreement with China which lists various car types and car parts in its tariff-reduction schedule.
5.Singapore offers generous incentive schemes for companies setting up shop there. A couple of schemes include tax breaks for five years, which can be extended, and grants that can cover up to 30 per cent of the cost of projects to help with business efficiency.
Intellectual property is another sticky issue for DYSON. Singapore has very strong intellectual protections which is an definitely an advantage. Setting up shop in China or elsewhere in Asia,apart from Japan, will not give you that sense of security.
DYSON employs more than 12,000 people across the world, with 4,800 working in the UK.