ASEAN EV to sustain growth on low base while world market slows

ASEAN’s electric vehicle (EV) market is poised for growth driven by regulatory support, localization efforts, and China’s EV manufacturers entering with affordable models.

Despite a forecasted slowdown in global EV sales due to market saturation and political uncertainty, ASEAN’s EV sales surged in 2023. Local regulations in Thailand and Indonesia, as well as the emergence of Vietnamese brands, contribute to this growth.

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Chinese EV makers, leveraging cost advantages, are expanding globally and eyeing ASEAN markets with competitive pricing. As ASEAN transitions to electric mobility, automakers with Chinese partnerships stand to benefit, supported by the region’s battery mineral resources and large automotive production capacity.

ASEAN EV

In the ASEAN-6 markets, fully electric car sales surged fourfold to 141,095 units in 2023. The ASEAN EV market is driven mainly by Thailand and Vietnam.

Thailand reported a sevenfold increase in sales, while Vinfast contributed significantly to Vietnam’s numbers. Indonesia and Malaysia also saw substantial growth in fully electric car sales. However, the Philippines had the smallest share.

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Overall, fully electric cars accounted for 6.2% of total car sales in ASEAN-6 in 2023, a significant increase from the previous year. Regulatory incentives and the introduction of cheaper electric vehicle models, particularly by Chinese manufacturers, are expected to further boost EV adoption rates in the region.