The UK based consumer electronics manufacturer, Dyson, approved a two-story manufacturing facility going to launch in Singapore by 2020. This is going to be Dyson first automotive manufacturing facility. Plan to begin construction in December. Dyson electric car will be launch in 2021.
Based on the supply chain, access to markets and experts opinions the build location will be announced shortly. Already, Dyson Vacuums motors manufacturing facility in the west park, Singapore. 1100 people in the process, which has a research and development lab focussing on artificial intelligence.
£200 million ($367 million) for Development
Dyson announced about the initial investment of £200 million ($367 million) in buildings and test facilities in the brand’s campus at Hullavingon Airfield, UK, where the Dyson first electric car is being developed.
Why in Singapore?
There are different opinions and analysis is going on the Dyson decision. From the last 40 years, there is no car manufacturing plant ever since Ford closed its factory in Singapore.
The only island-city-country in the world, Singapore is much more expensive than the rest of southeast Asia.
Incentives for High-Tech Companies
Singapore government offers incentives for high-tech companies like Dyson, which is one of the reasons for EVs manufacturing plant setup. Tax break up schemes can be extended up to 5 years, which is another advantage. Singapore government haven’t commented on whether Dyson benefited from any such schemes.
Singapore has the highest average salaries in the world after tax, land availability for industries is scarce and expensive. To increase productivity in the manufacturing sector, Singapore welcomes high-end manufacturers to encouraging automate technology.
Dyson Electric Car
It is very expensive to own a conventional car in Singapore because the government strictly controls the vehicles population by charging owners a variable rate and restricts them to use a vehicle for a limited number of years.
On the negative side, by 2021 Tesla electric car and rivals will enter into the market, then how Dyson going to shift the customers towards them is the major question.
Singapore government didn’t give a clarity about EVs policy, by taking initiative from Dyson makes the government think about electric vehicles benefits.
Dyson strategy is to grab the electric vehicle market by elevating the negative side of conventional vehicles, using electric vehicles owners maintenance price rates can be reduced and tax exemptions too.