The electric vehicle (EV) market in Southeast Asian countries is poised for significant growth, according to a recent report by Maybank Investment Bank Research. Several factors drive this growth, including favourable regulations, strong local brands, and the increasing presence of Chinese carmakers.
Maybank reports that Southeast Asian countries benefit from partnering with Chinese carmakers to manufacture and sell EVs and batteries. These companies are thriving in the EV boom, supported by abundant battery minerals, a large automotive production base, and robust demand across the region.
The government’s plan to reduce or remove fuel subsidies is a key factor influencing EV adoption in Malaysia.
“The Malaysian government is contemplating the reduction/removal of fuel subsidies. Any action on this will deliver the much-needed push for EV adoption as it will make EVs more competitive with petrol vehicles on a total cost of ownership (TCO) basis,” Maybank said.
Shifting Dynamics
Maybank also observes a shift in automotive production dynamics within Southeast Asia. In the next two years, Chinese carmakers are expected to have an annual production capacity of approximately 750,000 cars in Thailand. In contrast, Japanese original equipment manufacturers (OEMs) such as Honda and Suzuki are reducing their manufacturing capacities in the country.
“The global surplus of battery cells should benefit [Southeast Asia], making EVs more competitively priced compared to petrol vehicles,” Maybank said.
Electric car sales are already picking up across the region, with notable increases in several key markets. Malaysia saw a remarkable 142 per cent year-on-year increase in electric car registrations, reaching 10,663 fully electric cars in the first half of the year. Indonesia also experienced a surge in electric car sales, rising 104 per cent to 11,943 units.
Singapore reported a staggering 218 per cent year-on-year jump, with EV registrations hitting 6,019 units, surpassing its total for 2023. Meanwhile, Thailand’s fully electric car sales increased by 41.8 percent year-on-year to 26,377 units from January to April.
These figures indicate the growing momentum of the EV market in the region, spurred by strategic partnerships, regulatory support, and shifting consumer preferences towards sustainable mobility solutions.
