According to the latest research from Global Passenger Electric Vehicle Model Sales Tracker, passenger electric vehicle (EV) sales in Southeast Asia will account for less than 2% of total passenger vehicle sales in the region in 2022.
However, the size of the electric vehicle market in ASEAN is expected to grow significantly from $858.76 million in 2023 to $3,537.65 million in 2028. This growth is projected at a compound annual growth rate (CAGR) of 32.73% during the forecast period from 2023 to 2028.
As of the third quarter of 2022, Thailand controlled the electric vehicle (EV) market share in Southeast Asia with a percentage of about 59%, making it the largest. Indonesia followed with a market share of 25%. On the other hand, the market share of electric vehicle sales in the Philippines is very low, less than one percent. The Thai government has actively promoted electric vehicle sales through demand incentives and corporate income tax policies that favor electric vehicle manufacturers.
Thailand, which has the largest automobile manufacturing sector in Southeast Asia, is seeking to leverage its manufacturing expertise to attract automakers to produce and sell electric vehicles in the country. Indonesia and Vietnam also have advantages in mineral resources, giving them a comparative advantage over other countries in the region.
On the other hand, Singapore has taken the lead in electric vehicle charging infrastructure in ASEAN, with more than 1,800 public charging stations already in place. The Singapore government has ambitious plans to install an additional 60,000 charging points by the end of 2030 to strengthen the charging infrastructure.
In addition, Singapore has successfully established itself as a major research and development center for the electric vehicle industry. To achieve this, they have encouraged investment from multinational companies and start-ups to build a robust electric vehicle ecosystem in Singapore.
Southeast Asian countries have set high targets for electric vehicles and have introduced various incentives to promote the adoption of electric vehicles among consumers and to attract electric vehicle manufacturers to set up production facilities in the region.
Consumer attitudes toward electric vehicles in Southeast Asia are also positive. Recent data shows that most consumers in the region are willing to pay the same or even more for an electric vehicle.
Currently, the electric car market in Southeast Asia is changing. Chinese automaker Wuling recently took the lead in electric car sales in the region, becoming one of the most affordable EV options. In the automotive group category, Vingroup dominates electric vehicle sales in Southeast Asia, followed by Wuling (as part of the SAIC-GM-Wuling group) and Volvo (as a subsidiary of Geely Holdings).
Battery electric vehicles (BEVs) dominated sales, accounting for 64.6% of total electric vehicle sales, while plug-in hybrid electric vehicles (PHEVs) accounted for the rest. In the future, the total number of AC and DC charging stations is estimated to exceed two hundred thousand, reflecting rapid growth.
According to Counter Point Research Analyst Abhilash Gupta, demand for passenger electric cars in Southeast Asia is gradually increasing, although it still has a small market share compared to global electric car sales. By 2022, passenger electric vehicle sales in the region will account for only 0.5% of total global sales.
However, with rising geopolitical tensions between China and Western countries, Southeast Asia is becoming an attractive destination for Chinese automakers looking to expand their international markets. The important role of governments in supporting the growth of electric vehicles and efforts to improve electric vehicle charging infrastructure are expected to continue to be major factors driving the market over the forecast period.
Several governments in ASEAN have also announced plans to require a portion of their new vehicle sales to be electric vehicles in the coming years. In addition, stringent regulations implemented by regulatory bodies in ASEAN countries to reduce fuel emissions and improve road safety are impacting the entire automotive industry in the region.
By 2040, it is estimated that around 54% of new car sales and 33% of the total global car fleet will be electric vehicles. More than 50% of these electric vehicles will use batteries as a power source. ASEAN is one of the key markets for automotive fleet sales and is expected to experience significant growth.
Reference:
Ganbold, S. (2023). Market Share of Electric Vehicle (EV) Sales in Southeast Asia as of 3rd Quarter of 2022, by Leading Country. Statista
Gupta, Abhilash. (2023). Electric Vehicle Gain Ground in Southeast Asia; Thailand Dominates Volumes. Counter Point
Mordor Intelligence. ASEAN EV Market Size & Share Analysis-Growth Trends & Forecasts (2023-2028)
