Electric vehicle (EV) sales in Southeast Asia have more than doubled in the January to March quarter compared to the previous year, with Chinese manufacturer BYD and Vietnamese company VinFast leading the charge, according to Counterpoint Research. Meanwhile, sales of internal combustion engine (ICE) cars, typically dominated by Japanese and Korean firms, declined by 7%, highlighting the shift in the automotive market.
Chinese OEMs, particularly BYD, account for over 70% of EV sales in the region, filling the gap left by Japanese and Korean automakers who are slower in adopting EV technology. Thailand, a key auto manufacturing hub in Southeast Asia, is attracting significant investment from Chinese car makers for setting up new EV production facilities, with the country leading the region’s EV sales growth by 44%.
Vietnam has also witnessed remarkable EV sales growth, with VinFast contributing nearly 17% of regional sales and experiencing over 400% growth in battery electric vehicle (BEV) sales. Despite its growing sales, U.S. electric carmaker Tesla saw its market share in the region decline slightly in the first quarter, reflecting the intensifying competition from Chinese and Vietnamese competitors.
Several Southeast Asian countries, including Thailand and Indonesia, have implemented incentives to stimulate EV demand and attract new investments, which has been responded to by Chinese car makers seeking expansion opportunities beyond their domestic market. As a result, Southeast Asia is emerging as a significant expansion region for Chinese OEMs.
Source: Reuters