Chinese electric automakers continue to dominate the Southeast Asian electric vehicle industry, accounting for three out of every four unit sales in the first quarter of 2023.
Notably, the major driver of this significant transition is Thailand, the primary regional auto production hub. Counterpoint Research reports that the country accounted for nearly 79% of all EV sales in Southeast Asia in Q1 2023.
This significant development demonstrates the dominance of Chinese EV makers in the region, with Thailand playing a vital role in the overall EV uptake.
Thailand electrification initiatives
The government of Thailand targets to have EVs contribute 30% of its 2.5 million vehicle production per year.
In order to achieve that, Thailand has been offering substantial customer incentives and automaker subsidies to expand its domestic electric vehicle production.
In effect, it has gained a surge in investments from Chinese companies for domestic manufacturing, such as Great Wall Motor and BYD.
According to the report, Chinese electric automakers have invested at least $1.44 billion in total for production plants in the country, where Japanese brands currently lead the industry.
“Chinese auto groups are experiencing rapid growth and outpacing their competitors in the Southeast Asia region, with their market share increasing from 38% a year ago to nearly 75%.”
Abhilash Gupta, Counterpoint Analyst
In Q1 2023, the share of EVs in total passenger sales in the region surged to 3.8% from just 0.3% in the same period last year. This figure demonstrates a significant growth in EV uptake in Southeast Asia.
It is also worth noting that the most popular model in the region was the BYD Atto 3, also known as the Yuan Plus in other markets. Hozon’s Neta V and Tesla’s Model Y followed it. These three collectively held more than 68% of the BEV market.
The report further noted that EV share as a percentage of Southeast Asia’s overall car sales might grow to 6% by the end of the year amid the growing number of Chinese EV models.
“The Chinese presence in the SEA EV market is poised to strengthen as they establish regional manufacturing bases, thereby driving further growth in the EV sector. The overall sales of EVs are experiencing an upward trajectory in the SEA region. The outlook appears promising, and there is an expectation that the share of BEVs in total vehicle sales will reach 6% by the end of this year.”
Soumen Mandal, India-based Counterpoint Senior Analyst
See Also:
- Chinese electric automakers already invested $1.44B in Thailand
- Great Wall Motor to erect an EV battery factory and research center in Thailand
- BYD again leads Thailand’s EV sales in February, while Tesla is catching up
- Changan to develop a new EV production plant in Thailand
- Thailand promotes investment for electric vehicle production
Chinese electric automakers’ dominance in the Southeast Asian market, driven by Thailand’s crucial role as an auto production hub, significantly accelerates the shift to a more sustainable transportation system in the region.
As Chinese firms continue to pour investments and erect domestic production bases, their leading position will likely solidify further. In effect, the Southeast Asian EV industry may advance as one of the leading markets globally.
