Maybank Investment Bank has identified favorable regulations, local brand presence, and the entry of Chinese carmakers as key drivers for the growth of electric vehicle (EV) sales in the ASEAN region. The research firm highlighted that ASEAN companies partnering with Chinese manufacturers in production, sales, and battery supply chains stand to benefit significantly from the expanding EV market, supported by a robust automotive production infrastructure and increasing demand.
Also read: Growing Number of EV Owners Are Considering a Switch Back to a Fuel-Powered Vehicle
Surge in EV Sales Across ASEAN Countries
Malaysia
Malaysia has experienced a significant increase in fully electric car sales, which surged by 142% year-on-year to 10,663 units in the first half of the year. The market share for fully electric vehicles rose to 2.6%, compared to 1.6% in 2023. Hybrid car sales also increased by 22%, reaching 11,722 units. The Malaysian government is considering reducing fuel subsidies, which could further boost the competitiveness of EVs.
Indonesia
Indonesia saw a more than doubling of fully electric car sales, with 11,943 units sold in the first half of the year, increasing their market share to 4%. Hybrid car sales grew by 47%, totaling 24,397 units and making up 8% of total car registrations. The Indonesian government has extended sales tax discounts and suspended import duties on fully electric vehicles until 2025. Major Chinese automakers are setting up production facilities in the country.
Singapore
Singapore's fully electric car sales grew by 218% year-on-year to 6,019 units, making up 32.4% of total car sales. Hybrid car sales also rose by 63%, reaching 8,922 units and comprising 48.1% of total sales.
Also read: ASEAN and Japan Team Up for Electric Vehicle Race
Thailand
Thailand saw a 41.8% year-on-year increase in fully electric car sales, with 26,377 units sold from January to April. However, overall car sales in the country have slowed. The Thai government aims to sell 175,000 cars in 2024. Despite an oversupply of Chinese EVs, Japanese carmakers are reducing their production facilities for gasoline cars.
The Philippines
The Philippines has yet to release its electric vehicle sales data. However, the National Economic and Development Authority (NEDA) Board announced tax exemptions for various electric and hybrid vehicles, including jeepneys and buses, until 2028. The government aims to have 311,700 EVs and 7,300 charging stations by 2028.
Global EV Market Trends and Challenges
Globally, EV sales increased by 24% to 6.7 million units in the first half of the year, representing 21% of total car sales. However, the growth rate for fully electric car sales slowed, while plug-in hybrids saw a 59% increase. Challenges such as market saturation in Europe, weaker demand in the United States, inadequate charging infrastructure, and range anxiety are affecting the growth of fully electric cars.
Market Leaders and Future Outlook
China remains the dominant player in the EV market, accounting for 65% of sales, followed by the United States with 11%. Tesla and BYD are the leading companies in the fully electric car market, with BYD also experiencing significant growth in plug-in hybrid sales. Hybrid vehicles, seen as a transitional step towards fully electric cars, are regaining popularity. Hybrid sales increased by 17.7% to 4.3 million units in the first half, surpassing the growth rate of fully electric cars. Japan is the leader in hybrid car sales, but Japanese manufacturers are losing ground to Chinese companies due to slower progress in fully electric vehicle development. The United States is the second-largest market for hybrids, with a shift towards hybrids being observed.
