Japanese Media: Not Only Chinese Cars, Vietnamese Cars Are Also Eroding Japanese Brands’ Share in Southeast Asia

According to Japanese media outlet Alterna, published on July 28: In the first half of 2026 (January–June), Vietnam accounted for approximately 40% of new car sales in major Southeast Asian countries, while Thailand accounted for about 30%.

Although Chinese manufacturers such as BYD and Geely lead the region’s electric vehicle (EV) market, the rise of Vietnam’s domestic EV manufacturer VinFast is also challenging the once-overwhelming market dominance of Japanese brands in Southeast Asia.

Alterna summarized the EV sales situation across five Southeast Asian countries (Indonesia, Malaysia, Singapore, Thailand, and Vietnam) from January to June 2026. Singapore recorded the highest EV penetration rate at 62%. When including hybrid vehicles (HV) and plug-in hybrid vehicles (PHV), this figure reached 95%, while pure gasoline-powered vehicles accounted for only 5%. Due to restrictions on vehicle ownership qualifications in Singapore, total market sales for the first half of the year were slightly above 27,000 units. Nevertheless, with the growing adoption of EVs, Chinese brands currently hold 48% of the Singaporean market—surpassing Japanese brands, which account for 22%.

In Vietnam’s automotive market, EVs make up around 40% of the share. Compared to the other four countries, Vietnam’s EV share is at least 39.9%, a 13.4 percentage point increase compared to the same period last year. In terms of volume, sales have grown by 72%, reaching approximately 116,000 units. Leading the domestic EV market in Vietnam is VinFast, a local pure-electric vehicle manufacturer. It is expected to achieve sales of 115,916 units in the first half of 2026—almost monopolizing the Vietnamese EV market. This exceeds Toyota, ranked second in the market, by more than threefold (35,410 units).

VinFast was established in 2017 as an automotive division under Vingroup, a local conglomerate primarily focused on real estate. Initially, it adopted technology from European manufacturers to produce internal combustion engine vehicles. In 2021, it launched its first electric vehicle, and since 2022, VinFast has concentrated exclusively on EVs. The company’s rapid expansion is reportedly driven by Vingroup’s successful deployment of VinFast vehicles into taxi fleets, along with strategies such as free charging.

Akira Yosuke, Global Client Manager at Intage familiar with the Southeast Asian auto market, told Alterna: “VinFast has developed relatively affordable, low-cost models, built out a robust charging infrastructure, and invested heavily in after-sales service, creating a sense of security that ‘using an EV daily is not problematic.’” He noted that best-selling compact EVs like the “VF 3” and the compact SUV EV “VF 5” are well-suited for everyday use due to their size and price, making them ideal for urban dwellers, first-time car buyers, and those transitioning from two-wheelers to four-wheelers. The VF 3 starts at 270.75 million VND (approximately 1.68 million JPY or 70,000 CNY), while the VF 5 begins at 472.1 million VND.

Moreover, through establishing taxi companies, VinFast has expanded into overseas markets, entering countries such as Indonesia and the Philippines. In June this year, it launched an electric taxi service in India. Akira emphasized: “The Southeast Asian EV market is moving beyond its initial boom phase into a mature stage.” He added: “I believe EVs in Southeast Asia have not yet reached a point where they fully replace internal combustion engine or hybrid vehicles.” He pointed out: “Vietnam is a unique market where VinFast’s influence is extremely significant, whereas Thailand and Indonesia remain highly dependent on policy subsidies.”

Original article: toutiao.com/article/1871935101535244/

Disclaimer: The views expressed in this article are solely those of the author.