In a recent report by Counterpoint Research, the electric vehicle (EV) market in Southeast Asia has seen a remarkable surge, largely driven by Chinese automakers like BYD and Vietnam’s VinFast. The region witnessed a more than doubling of EV sales in the January to March quarter compared to the previous year, while sales of internal combustion engine (ICE) cars declined by 7%.
Counterpoint analyst Abhik Mukherjee highlighted the trend, noting that Japanese and Korean automakers, who traditionally dominate conventional vehicle sales, are lagging behind in EV adoption. This gap is being filled by Chinese OEMs, which accounted for over 70% of EV sales in Southeast Asia, with BYD leading the charge.
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Thailand, a key player in the region’s auto manufacturing sector, has become a focal point for EV production, attracting significant investments from Chinese car makers. This has propelled Thailand to account for 55% of all EV sales in Southeast Asia in the first quarter, with a notable 44% growth compared to the previous year.
Vietnam, on the other hand, has seen a staggering 400% increase in battery electric vehicle (BEV) sales, contributing to nearly 17% of regional sales. VinFast, a Vietnamese automaker, has emerged as a strong player in the market, closely trailing BYD in market share.
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Despite its global prominence, U.S. electric carmaker Tesla saw a slight dip in market share in Southeast Asia, dropping to 4% in the first quarter. This decline comes amidst a 37% growth in sales for the company in the same period.
The rise of EVs in Southeast Asia has been supported by various government incentives aimed at stimulating demand and attracting investments. Countries like Thailand and Indonesia have rolled out such incentives, prompting Chinese car makers to expand their presence in the region.
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Abhik Mukherjee summed up the situation, stating, “Southeast Asia is becoming a major expansion region for Chinese OEMs.” As the EV market continues to grow, the dominance of Japanese and Korean firms in the region’s automotive industry could face significant challenges from their Chinese counterparts.
