March 12 (Reuters) - Tesla's expansion into

Southeast Asia is a priority, a senior executive said on

Tuesday, highlighting the fast-growing market where the U.S.

electric-vehicle maker faces competition from China's BYD.

The region has emerged as one of the hottest EV markets in

recent years and could offer Tesla a large customer base at a

time when demand is slowing in the United States.

"Southeast Asia will undoubtedly be a major place of growth

over the coming years in battery storage and electric vehicle

adoption," Rohan Patel, senior public policy and business

development executive at Tesla, said in a post on X.

Patel was responding to a user post that marked the first

deliveries of the Model Y cars in Malaysia. The company also

sells its Model 3 compact sedan in the country.

The Malaysian government had last year given Tesla the

license to sell its cars in the country and said the firm would

also establish a network of charging stations there.

Tesla is also in talks for expanding its operations in other

countries, including in Thailand, which is Southeast Asia's

largest car producer and exporter.

A Thai government official said earlier this month that the

company had discussed a potential production facility after

surveying a site late in 2023.

Still, Tesla's ambitions for Southeast Asia will have to

contend with competition from BYD, which has shot past rivals to

account for more than a quarter of the EVs sold in the region.

In contrast with Tesla's direct-to-consumer approach, BYD

has partnered with large, local conglomerates that have allowed

the carmaker to expand reach, test consumer preferences and

navigate complex government regulations in the region.

The Chinese EV maker sold more than 26% of all cars in

Southeast Asia's small but fast-growing EV market in the second

quarter of 2023, while Tesla accounted for about 8%, according

to Counterpoint.

EVs constituted 6.4% of all passenger vehicle sales in the

region in the quarter, up from 3.8% in the preceding quarter.