An automotive market review of the ASEAN-6 countries by PricewaterhouseCoopers International (PwC) revealed Vietnam and Thailand lead in separate categories.
Vietnam: The fastest-growing market
PwC’s latest Overview of the ASEAN-6 automotive market covers the first half of 2026. This report covered the first six months of 2026. It also analyses automotive sales, electrification, production results, and competition between the six countries, which include: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Total industry volume (TIV) for the ASEAN-6 increased by 11.1 per cent year-on-year (YoY). The report also found that Vietnam’s TIV increased by 31.1 per cent YoY, the highest among the sample. Indonesia ranked second with a 15.9 per cent increase YoY while Thailand followed with 15.1 per cent. Singapore’s TIV for the first half of 2026 grew by 6.9 per cent YoY, ahead of Malaysia with a 2.6 per cent increase. Lastly, the Philippines’ TIV faced a decrease of 6.1 per cent YoY.
Through their analysis of the region, PwC found that several factors affected the variation in results, such as: “purchasing power, consumer preferences, infrastructure, regulation, and domestic automotive capabilities.” For Vietnam specifically, its sharp increase was bolstered by strong GDP growth for that period.
Furthermore, its local brand VinFast has been the country’s best-selling brand for several months and has even broken two sales records within a year. VinFast delivered more than 115,916 EVs for the first half of 2026. Thanks to the brand’s availability and affordable price points, VinFast’s growth has contributed to the rapid expansion of EV sales in Vietnam.
Vietnam’s hybrid sales were also a significant contributor to market growth for H1 2026. Hybrid sales in the country have increased by 83 per cent YoY, reflecting a strong demand from Vietnamese consumers this year. While EVs hold the largest share in Vietnam’s automotive market, demand for hybrid vehicles has been steadily growing. Hybrid manufacturers like Toyota urged the Vietnamese government to recognise these vehicles as “low emission” and requested they be given priority in restricted zones.
Thailand: The highest electrified vehicle (xEV) sales
While Vietnam leads the charge in fastest growth, Thailand recorded the highest xEV sales among the ASEAN-6. The country’s EV sales for the first half of 2026 amounted to 206,000 units, rising 47 per cent YoY. The share of EVs in Thailand’s automotive market reached 53 per cent in H1 2026, up from 32 per cent in H1 2024. Lastly, PwC recorded an approximate 84 per cent increase in battery electric vehicle (BEV) sales. Thailand’s TIV also increased by around 15 per cent during the period.
“The industry is entering a new phase in which success will be determined less by imports and more by localisation,” said Steve Yang, Automotive Leader at PwC Thailand. “Companies investing today are making a long-term bet that Thailand will remain ASEAN’s leading automotive and EV production hub, underpinned by a deeper domestic ecosystem for batteries, components and advanced manufacturing. With the new excise tax scheme set to come into force in Thailand, the market is also expected to see a wave of consolidation, particularly among Chinese OEMs (Original Equipment Manufacturers).”
Chinese vehicle manufacturers in the region saw a 5 per cent rise in market share from around 11 per cent in 2025 to 15.7 per cent in H1 2026. Policies in Vietnam, Indonesia, Thailand, and Malaysia such as fiscal incentives and local assembly have pushed the growth of Chinese OEMs in the ASEAN region.
As the presence of Chinese OEMs grows in Thailand, the government has decided to revamp its current tax scheme as it seeks to encourage localisation and greater domestic value creation.
Did you find this article interesting? Click the ‘heart’ button above to give it a like!
