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Transcript

00:00:00
>> Britain's Dyson surprised the auto industry this week when it said the company's first electric car would be built in Singapore, but why? It's been nearly 40 years since a car ever rolled off a production line there. Land prices are premium in the Southeast Asian city state, and costs are sky high.
00:00:19
Dyson CEO says it's closer to big Asian markets. China is a major automotive market, the major automotive market you could argue globally, so we need to take that very seriously.>> But why not build in China, like Tesla is doing? Reuters' Aradhana Aravindan says it's becoming a crowded market and intellectual protections aren't as strong.
00:00:39
>> Experts say Singapore has strong policies regarding intellectual property rights, there is the maybe a few more concerns in China regarding those. Also in China, experts have pointed to the risk of over capacity in the electric vehicle market. The government there in fact has removed tax breaks for about 2,000 electric vehicle car designs.
00:00:59
>> Singapore meanwhile has a free trade agreement with China and is well placed to source components from across Southeast Asia.>> The government offers many tax bricks, and incentives for companies to be here. Singapore has a large English-speaking talented workforce, skilled workforce. And it has a very large port, which makes it easy to ship your car from the factory to its market.
00:01:22
>> That would be crucial, as not many sales would be driven from the local market. Singapore is one of the most expensive places in the world to own a car due to government regulation of vehicles. A 400-strong team has been working secretly on Dyson's multi-billion dollar electric car project.
00:01:38
No designs have been seen yet, but Dyson says it will not be like anything else on the market.>> Project or an electric vehicle project