Chinese NEVs Power Up Southeast Asia Through Deepened Partnerships
Chinese automakers expand their presence in Southeast Asia with increased NEV production and market share.
In November 2023, Chinese automaker SAIC-GM-Wuling (SGMW) achieved a significant milestone by rolling out its 160,000th electric vehicle from its Indonesian assembly line, marking a crucial development in the region's new energy vehicle (NEV) market.
This model is expected to be showcased in Thailand, reflecting SGMW's growth and commitment to the Southeast Asian automotive industry.
SGMW, the first Chinese company to set up manufacturing operations in Indonesia, has successfully established a local NEV supply chain over the past seven years, capturing more than 50 percent of Indonesia's NEV market.
Key domestic players, including BYD, Chery, and Great Wall Motor, are also gaining traction, leveraging competitive pricing and advanced features to boost their sales in this burgeoning sector.
Data from the Association of Indonesian Automotive Industries indicates that in 2024, the five best-selling NEV models in Indonesia were produced by Chinese manufacturers, with BYD's M6 leading sales.
In Thailand, the NEV landscape is rapidly changing, as the number of registered pure electric vehicles reached 70,000, comprising roughly 14 percent of total vehicle sales in 2024. Four out of the five best-selling models were Chinese brands.
The same trend is observable in Cambodia, where BYD has emerged as a market leader in NEVs.
Traditionally dominated by Japanese automakers, Thailand's automotive market has experienced a shift, with Chinese companies increasing their market share from 5 percent to 11 percent in 2023. Contrastingly, Japanese manufacturers saw their share decline from 90 percent to 78 percent as they lagged in the transition to electric vehicles.
A survey highlighted that younger consumers in Thailand are increasingly favoring quality and cost over brand loyalty, a trend that Chinese manufacturers have capitalized on through their affordable and technologically advanced offerings.
Affordability remains a pivotal factor for consumers in Southeast Asian markets.
Chinese automakers have adeptly addressed this concern by delivering a variety of technologically enhanced vehicles at competitive prices, thereby solidifying their market position.
According to figures from China's General Administration of Customs, total auto exports from China surged from 2 million units in 2021 to approximately 6.41 million in 2024. The country accounted for over 60 percent of global electric vehicle sales in 2023, shipping over 1.2 million units internationally, representing a year-on-year increase of 77.2 percent.
The expansion of China's automotive export sector can be attributed to its extensive network of local suppliers, essential for establishing a transnational supply chain.
In Indonesia, SGMW has enabled 17 Chinese auto enterprises to explore international markets while developing over 100 local suppliers over the past seven years.
In November 2023, the inauguration of the China-Indonesia Institute of Modern Craftsmanship of New Energy Vehicle marked a collaborative effort between Liuzhou City Vocational College, Indonesia's Anand Industrial Training Institute, and SGMW to enhance the local NEV sector's capabilities.
Aiming to further internationalize NEV production, several prominent Chinese automakers have initiated significant investments in Southeast Asia.
In 2024, BYD and GAC Aion launched NEV manufacturing operations in Thailand, with annual production capacities of 150,000 and 50,000 vehicles, respectively.
BYD is also set to commence operations in a top-tier assembly plant in Cambodia by the end of 2025, with a capacity for 20,000 vehicles.
Emerging markets across Southeast Asia, Latin America, and Africa are increasingly recognized for their growth potential.
Projections indicate that six major ASEAN economies will experience NEV market growth rates ranging from 16 percent to 39 percent over the next decade.
Analysts have forecasted that by 2030, Chinese automakers may capture over 70 percent of the domestic NEV market and export approximately 9 million vehicles, securing 33 percent of the global market share.
Furthermore, the NEV market value in countries such as Indonesia, Malaysia, Thailand, and Singapore is anticipated to escalate from $2 billion in 2021 to between $80 billion and $100 billion by 2035, according to recent studies.
The increasing demand for NEVs in developing regions has contributed significantly to market growth, with China's influence at the forefront of this transition.
This model is expected to be showcased in Thailand, reflecting SGMW's growth and commitment to the Southeast Asian automotive industry.
SGMW, the first Chinese company to set up manufacturing operations in Indonesia, has successfully established a local NEV supply chain over the past seven years, capturing more than 50 percent of Indonesia's NEV market.
Key domestic players, including BYD, Chery, and Great Wall Motor, are also gaining traction, leveraging competitive pricing and advanced features to boost their sales in this burgeoning sector.
Data from the Association of Indonesian Automotive Industries indicates that in 2024, the five best-selling NEV models in Indonesia were produced by Chinese manufacturers, with BYD's M6 leading sales.
In Thailand, the NEV landscape is rapidly changing, as the number of registered pure electric vehicles reached 70,000, comprising roughly 14 percent of total vehicle sales in 2024. Four out of the five best-selling models were Chinese brands.
The same trend is observable in Cambodia, where BYD has emerged as a market leader in NEVs.
Traditionally dominated by Japanese automakers, Thailand's automotive market has experienced a shift, with Chinese companies increasing their market share from 5 percent to 11 percent in 2023. Contrastingly, Japanese manufacturers saw their share decline from 90 percent to 78 percent as they lagged in the transition to electric vehicles.
A survey highlighted that younger consumers in Thailand are increasingly favoring quality and cost over brand loyalty, a trend that Chinese manufacturers have capitalized on through their affordable and technologically advanced offerings.
Affordability remains a pivotal factor for consumers in Southeast Asian markets.
Chinese automakers have adeptly addressed this concern by delivering a variety of technologically enhanced vehicles at competitive prices, thereby solidifying their market position.
According to figures from China's General Administration of Customs, total auto exports from China surged from 2 million units in 2021 to approximately 6.41 million in 2024. The country accounted for over 60 percent of global electric vehicle sales in 2023, shipping over 1.2 million units internationally, representing a year-on-year increase of 77.2 percent.
The expansion of China's automotive export sector can be attributed to its extensive network of local suppliers, essential for establishing a transnational supply chain.
In Indonesia, SGMW has enabled 17 Chinese auto enterprises to explore international markets while developing over 100 local suppliers over the past seven years.
In November 2023, the inauguration of the China-Indonesia Institute of Modern Craftsmanship of New Energy Vehicle marked a collaborative effort between Liuzhou City Vocational College, Indonesia's Anand Industrial Training Institute, and SGMW to enhance the local NEV sector's capabilities.
Aiming to further internationalize NEV production, several prominent Chinese automakers have initiated significant investments in Southeast Asia.
In 2024, BYD and GAC Aion launched NEV manufacturing operations in Thailand, with annual production capacities of 150,000 and 50,000 vehicles, respectively.
BYD is also set to commence operations in a top-tier assembly plant in Cambodia by the end of 2025, with a capacity for 20,000 vehicles.
Emerging markets across Southeast Asia, Latin America, and Africa are increasingly recognized for their growth potential.
Projections indicate that six major ASEAN economies will experience NEV market growth rates ranging from 16 percent to 39 percent over the next decade.
Analysts have forecasted that by 2030, Chinese automakers may capture over 70 percent of the domestic NEV market and export approximately 9 million vehicles, securing 33 percent of the global market share.
Furthermore, the NEV market value in countries such as Indonesia, Malaysia, Thailand, and Singapore is anticipated to escalate from $2 billion in 2021 to between $80 billion and $100 billion by 2035, according to recent studies.
The increasing demand for NEVs in developing regions has contributed significantly to market growth, with China's influence at the forefront of this transition.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
