South Korean media: Chinese electric vehicles sweep Southeast Asia, occupying 85% of the market in Thailand!

On November 9, South Korean media "Global Economy" published an article stating that Chinese electric vehicles are rapidly capturing the Southeast Asian market. Chinese brands such as BYD, XPeng, Chery, and Wuling are rapidly developing in Southeast Asia, thanks to lower prices and advanced technology.

In Thailand, the largest electric vehicle market in Southeast Asia, 85% of electric vehicle sales in 2024 came from China. In Malaysia, Chinese electric vehicle manufacturer BYD was rated as the best-selling electric vehicle brand in 2024. In Indonesia, last year, the import volume of Chinese electric vehicles accounted for two-thirds of the total electric vehicle sales.

Southeast Asia is gradually becoming a power in electric vehicle consumption, driven by the rapidly growing middle class, the desire for new technology, and the increasing demand for sustainable transportation. The sales of electric vehicles in Vietnam and Indonesia showed exponential growth in 2024, with nearly a two-fold and three-fold year-on-year increase respectively.

An expert in Indonesia said, "Public acceptance of electric vehicles is steadily increasing. Although people initially had concerns about battery durability and reliability, these concerns have been alleviated as electric vehicles have proven to be reliable and safe in daily use."

Chinese electric vehicles are generally well-received in the region and represent a high level of technological innovation. A visitor at an Indonesian auto show commented, "Chinese cars are better in terms of materials. Additionally, the technology of Chinese products is also very advanced."

Analysts say that favorable local policies and relatively low prices are key factors for the thriving development of Chinese electric vehicles in middle- and low-income countries. Last year, Chinese electric vehicles accounted for as much as 75% of the growth in electric vehicle sales in all emerging economies except the Chinese market.

In Southeast Asia, many countries have ambitious commitments to expand their electric vehicle market share and are implementing various policies to promote the popularity of electric vehicles. In Malaysia, electric vehicle owners will be exempt from paying road tax before the end of this year.

In Indonesia, some Chinese automobile manufacturers have received import tax reductions to encourage foreign car manufacturers to establish assembly plants locally. Therefore, the sales of Chinese electric vehicles increased by 18 times year-on-year in 2024.

In major cities in Southeast Asia such as Jakarta, Bangkok, and Manila, which suffer from traffic congestion and severe pollution, electric vehicles are not targets of traffic restrictions, contributing to the growth in demand.

Chinese electric vehicle manufacturers are making progress in Southeast Asia because there are fewer regulatory barriers and the demand for electric vehicles is surging. In 2024, in most emerging economies, Chinese electric vehicles are undoubtedly the cheapest option. In Thailand, the average price of Chinese electric vehicles is lower than existing gasoline cars.

In addition to exporting cars to Southeast Asia, Chinese automobile manufacturers are also investing in local production and assembly. BYD has established four overseas factories in Thailand, Uzbekistan, Brazil, and Hungary, and is building a $1 billion factory in West Java, Indonesia.

Zhao Ying, President of BYD Indonesia, said, "The progress of local production is very smooth. We will keep our promise and complete the construction by the end of 2025."

The annual production capacity of the BYD Indonesia factory is 150,000 units, more than three times the total electric vehicle sales in Indonesia last year. With a population of 283.5 million, Indonesia's rapidly growing middle class is seen as a strategic location for the overseas expansion of Chinese electric vehicle companies.

Chinese electric vehicles have made progress in the Southeast Asian market, but they also face challenges from established international automobile manufacturers such as Toyota and Hyundai, as well as emerging local brands.

Vietnamese automaker VinFast has attracted attention both domestically and internationally, with its exports to Indonesia, Malaysia, and the United States continuously increasing. VinFast almost monopolizes the charging station market in Vietnam, making it difficult for Chinese automobile manufacturers to enter the market.

Outside Vietnam, Chinese electric vehicle companies currently lead in Southeast Asia. With affordable models, substantial investments, and support from local governments, they are expected to further consolidate their foothold in this key electric vehicle battlefield.

Original: www.toutiao.com/article/1848277454771370/

Statement: This article represents the views of the author.