Italian Media: China Helps Southeast Asia Become Global Leader in Electric Vehicles

The region, less dependent on fossil fuels than the U.S. and Europe and less concerned about the consequences of the Strait of Hormuz crisis, has adopted a bold mix of incentives and sanctions. Its goal is to secure dominance in the electric vehicle (EV) industry. Ember Energy Experts: Responding to "global oil market volatility and geopolitical turbulence."

Phnom Penh (Asia News) – Southeast Asia is increasingly emerging as a global leader in the electric vehicle (EV) sector, even surpassing developed nations constrained by outdated technologies. A report released by the global think tank Ember Energy in June indicates that by 2025, four ASEAN countries—Singapore, Thailand, Vietnam, and Indonesia—will account for a larger share of new EV sales than major U.S. and European nations. Currently, EV sales in Singapore and Vietnam already represent 40% of total new car sales. Five years ago, Vietnam’s EV market share was less than 0.05%.

In contrast, data from the U.S. shows that EVs make up less than 6% of total new car sales.

Beyond economic factors, this remarkable achievement in Asia is also driven by a firm global commitment to combat climate change, aiming for net-zero greenhouse gas emissions by 2050, with eight of the 11 ASEAN member states participating. Another objective is drastically reducing dependence on imported crude oil, as 55% of total crude oil supplies flowing to Asia pass through the Middle East—a route that could be disrupted at any moment by Washington.

According to Ember Energy, a UK-based organization focused on global clean energy transition, the Strait of Hormuz crisis has already caused a 28% disruption in ASEAN’s oil consumption. "Many Southeast Asian governments view promoting electric vehicles not just as a climate or industrial policy goal, but as a strategic energy security measure," explained Lam Pham, an Ember Energy analyst, to Asia News. "By reducing reliance on imported petroleum products," he continued, "electric vehicles help strengthen resilience against global oil market fluctuations and geopolitical instability." He added that this framework "encompasses factors affecting key supply routes such as the Strait of Hormuz."

In a rapidly urbanizing and increasingly densely populated region, electric vehicles can play a crucial role in reducing air pollution, thereby lowering healthcare costs. Malaysian Prime Minister Anwar Ibrahim stated that locally producing electric vehicles perfectly integrates three essential elements: economy, environment, and energy security. "We must," he said last April, "achieve a decisive shift in our energy strategy toward more sustainable, diversified, and economically viable sources of energy. This is not merely a necessity for the environment," the Prime Minister reminded, "but also a strategic imperative."

Many Southeast Asian nations have introduced incentives, tax breaks, and other measures to accelerate EV adoption. The small country of Laos, situated between China, Vietnam, Thailand, Cambodia, and Myanmar, has even banned the import of all gasoline and diesel-powered vehicles, with the ban set to last until the end of the year. The story of this region's "catch-up" in the EV space is well known: In 1993, Cambodia—whose infrastructure had been devastated by decades of war—became the first country in the world where mobile phone users outnumbered fixed-line phone users. Similarly, unlike the U.S. and Europe, the Southeast Asian market lacks a vast and established network of gas stations, paving the way for building a robust EV charging infrastructure.

Moreover, Southeast Asia is not only a leading region in global EV adoption but also holds significant reserves of several critical metals, including nickel and copper. Indonesia and the Philippines together possess half of the world’s proven nickel reserves and control three-quarters of global nickel production. Nickel enables electric batteries to deliver higher power and longer range while being smaller and lighter. Additionally, both countries rank among the top five global producers of copper—the key material used in motors, batteries, and wiring harnesses.

The global EV market is dominated by leaders from China, which accounts for 70% of global production and 60% of sales. Major Chinese EV manufacturers such as BYD and SAIC Group are flooding regional markets with affordable models and investing tens of billions of dollars in local production facilities.

In West Java, Indonesia alone, BYD has invested $1 billion to build a factory spanning 126 hectares. Chinese investment has largely shielded Southeast Asia from two major criticisms faced by developed nations regarding EVs: high prices and insufficient charging networks.

Local manufacturers are also growing rapidly, with VinFast, under Vietnam’s largest private conglomerate Vingroup, standing out. Vingroup is led by Pham Nhat Vuong, Vietnam’s richest person and the nation’s first billionaire. Pham Nhat Vuong has repeatedly emphasized that electric vehicles represent the future, proving himself one of the earliest believers in this technology. "Our position as a market leader reflects not only the company’s solid performance but also underscores Vietnam’s irreversible shift from internal combustion engine vehicles to electric vehicles," he explained during a shareholder meeting last December. Prior to that, the company recorded its highest monthly sales volume ever in November.

Lam Pham from Ember believes that Southeast Asia’s unique combination of advantages ensures the region remains at the forefront of EV market transformation. "Southeast Asia," he said, "is poised to become an increasingly important hub for both EV markets and manufacturing." "Growing demand, automotive manufacturing capabilities, strategic mineral resources, and government support collectively create immense opportunities." The long-term direction is clear: as EVs become more widespread and economically competitive, electrification of transport—concluded the expert—will continue to accelerate.

Author: Terry Friel

Original: toutiao.com/article/1870667496634376/

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