GSRM 7224 Final Assessment January 2025 UNITAR International University : Marketing Management

Tesla, a global leader in electric vehicles (EVs), entered the Malaysian market in 2023 as part of its Southeast Asian expansion. With the government promoting EV adoption through tax incentives and infrastructure development, Tesla saw an opportunity to establish its presence. However, the company faced competition from brands like BYD, Hyundai, and BMW, along with challenges related to pricing, infrastructure, and consumer perception. Tesla’s strategic expansion into Malaysia involved setting up a head office and service center in Cyberjaya, Selangor, and establishing experience centers in key metropolitan areas. Tesla understands that its success in Malaysia depends on engaging with the right customer segments and leveraging data-driven marketing insights.
The company uses various strategies to connect with customers, including data analytics, consumer behavior analysis, and digital engagement. By monitoring online engagement, Tesla tracks interest in its products and adjusts its strategies accordingly. Tesla also focuses on understanding customer concerns, such as range anxiety, charging infrastructure availability, and long-term cost benefits. Through social media and customer forums, Tesla engages directly with potential buyers, addressing their concerns
and providing transparent information about its vehicles. Additionally, the company encourages word-ofmouth marketing by fostering a strong community of Tesla owners who advocate for the brand. Tesla’s
entry into Malaysia was also supported by government tax breaks announced in Budget 2022 and the Peneraju’s Global Battery Electric Vehicle (BEV) program, enabling Tesla to adopt the Direct-toConsumer (D2C) model by bypassing the requirement of franchised Approved Permits (AP). Tesla
segments the Malaysian market based on demographic, psychographic, and behavioral factors.
Demographically, its primary customers are high-income individuals, business professionals, and corporate buyers who can afford premium EVs. Psychographically, Tesla attracts tech enthusiasts, sustainability-conscious consumers, and those seeking luxury and performance. Behaviourally, it targets early adopters of EV technology and customers switching from premium gasoline-powered cars.

Tesla’s target market in Malaysia includes individuals who value innovation, sustainability, and premium branding. The company also focuses on corporate and fleet buyers, particularly organizations looking to reduce their carbon footprint as part of Environmental, Social, and Governance (ESG)
initiatives. For positioning, Tesla differentiates itself as a premium yet accessible EV brand, offering advanced technology, superior performance, and a commitment to sustainability. It positions its vehicles as a status symbol while maintaining a competitive price point compared to luxury competitors like BMW and Mercedes-Benz. The brand’s slogan, “Sustainable Performance, Electrified,” reinforces this image, appealing to both performance-driven and eco-conscious buyers.
Using the D2C modal, Tesla bypasses traditional dealership systems, reducing costs and streamlining the sales process. Customers order their vehicles online, configure their specifications, and have them delivered directly. This model provides a seamless and digitally driven purchasing experience,
aligning with Tesla’s tech-oriented brand identity. Tesla enhances the ownership experience with over-theair (OTA) software updates, which improve vehicle performance and introduce new features remotely. The company also offers mobile servicing, reducing the need for frequent visits to service centers. By focusing on convenience, digital engagement, and technology integration, Tesla provides a unique customer experience that sets it apart from traditional car brands.
Tesla’s pricing strategy in Malaysia follows a value-based approach, balancing affordability and premium appeal. The Model Y, Tesla’s first official offering in Malaysia, is priced at RM 199,000, making it more accessible than luxury EVs but still positioned as a high-end vehicle. Several factors influence
Tesla’s pricing in Malaysia. First, competitive positioning plays a key role, where Tesla prices its vehicles lower than premium competitors like BMW and Mercedes-Benz while maintaining higher perceived value than budget-friendly EV brands like BYD and Hyundai. Second, government incentives significantly
impact final pricing. Malaysia offers import tax exemptions and road tax waivers for EVs, allowing Tesla to offer competitive prices. Finally, Tesla leverages brand prestige and technological superiority to justify
its pricing, ensuring that customers see value beyond just the cost of the vehicle.
Tesla’s marketing communication strategy differs from traditional automakers, as it does not rely on large-scale advertising or dealership promotions. Instead, Tesla focuses on digital engagement, influencer marketing, and word-of-mouth promotion. Social media plays a crucial role in Tesla’s marketing, with platforms like Twitter, YouTube, and Instagram used to showcase new features, customer experiences, and sustainability efforts. Tesla also engages with tech influencers, automotive bloggers, and
sustainability advocates to generate organic discussions around its brand. In Malaysia, Tesla has established Tesla Experience Centers, where potential customers can explore the vehicles and learn about EV technology. The company also leverages limited test drives, referral programs, and community-driven events to create brand excitement. However, challenges remain, including consumer scepticism, lack of traditional dealership support, and limited localized marketing efforts.
The company’s presence is expected to create skilled job opportunities and increase the participation of local companies in the Tesla ecosystem. Malaysia aims to have at least 15% of EVs (electromotive vehicles) in the total industry volume by 2030 and 38% by 2040, supported by the construction of 10,000 charging facilities by 2025.

Sources:
• MIDA. (2023, July 20). Tesla Sees Malaysia as a Promising Market For its Electric Vehicles. Malaysian Investment Development Authority. Retrieved from https://www.mida.gov.my/events/tesla-sees-malaysia-as-a-promising-marketfor-its-electric-vehicles/3
• NST Online. (2023, July 18). Tesla Malaysia officially launches on July 20. New Straits Times. Retrieved from https://www.nst.com.my/news-cars-bikes-trucks/2023/07/926848/tesla-malaysia-officially-launches-july-207
• Technode. (2023, July 25). Tesla’s entry into Malaysia could lead to structural change in local automotive industry but lack of charging hubs remains a challenge. Technode. Retrieved from https://technode.global/2023/07/25/teslas-entryinto-malaysia-could-lead-to-structural-change-in-local-automotive-industry-but-lack-of-charging-hubs-remains-achallenge/5
• equalocean.com. (2024, September 27). Research on the Market Entry of EVs in Malaysia. Retrieved from https://equalocean.com/analysis/20240927211238

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