Chinese automakers are accelerating their expansion in Southeast Asia, leveraging strategic investments and competitive pricing to solidify their dominance in the region’s burgeoning new energy vehicle (NEV) market.
In November, SAIC-GM-Wuling (SGMW) marked a significant milestone by rolling out its 160,000th vehicle in Indonesia—a compact electric model destined for the Thai market. SGMW, headquartered in Liuzhou, Guangxi, has established a strong NEV supply chain in just seven years, enabling it to capture over 50% of Indonesia’s local NEV market. As the first Chinese automaker to invest and build a factory in the country, SGMW has played a pivotal role in expanding China’s electric vehicle footprint in the region.
China’s growing presence in Southeast Asia’s NEV sector has been reinforced by key domestic manufacturers such as BYD, Chery, and Great Wall Motor. These automakers have capitalized on cost-effective production, advanced technology, and strong after-sales support to gain market traction. Data from the Association of Indonesian Automotive Industries reveals that in 2024, three Chinese carmakers dominated the list of the five best-selling NEV models in Indonesia, with the BYD M6 emerging as the top seller.
In Thailand, where electric vehicle adoption is rising, four out of the five bestselling pure electric cars in 2024 were from Chinese brands. The trend extends to Cambodia, where BYD leads the nascent NEV market. While Japanese automakers have historically dominated Thailand’s auto industry with conventional internal combustion vehicles, Chinese brands are increasingly disrupting this stronghold.
NEV sales in Thailand have surged, leading to a doubling of Chinese brands’ market share from 5% to 11% in 2023. Meanwhile, Japanese automakers—slower in transitioning to electric power—have seen their market share decline from 90% to 78% over the same period.
Consumer preferences are also shifting. “Our parents grew up with Toyota and Honda, but younger generations prioritise affordability and quality over brand loyalty,” said Li Fenghuang, a Thai student. “This is where Chinese manufacturers excel.”
Affordability remains a key factor for consumers in emerging markets. Industry analysts note that Chinese automakers have successfully positioned themselves by offering technologically advanced NEVs at competitive prices, ensuring a strong foothold in Southeast Asia.
China’s dominance in the global NEV market is evident in export figures. Data from China’s General Administration of Customs shows that auto exports surged from 2 million to 6.41 million units between 2021 and 2024. In 2023 alone, China accounted for over 60% of global NEV sales, shipping 1.2 million units overseas—a 77.2% year-on-year increase. The momentum continued in 2024, with pure electric car exports surpassing 2 million units for the first time.
This growth is underpinned by an extensive network of suppliers, enabling a resilient transnational supply chain. In Indonesia, SGMW has facilitated the entry of 17 Chinese auto supply companies and nurtured over 100 local suppliers over the past seven years. Additionally, the China-Indonesia Institute of Modern Craftsmanship of New Energy Vehicle, a collaboration between Liuzhou City Vocational College, Indonesia’s Anand Industrial Training Institute, and SGMW’s Indonesian subsidiary, was inaugurated in November to support regional NEV sector development.
Recognizing Southeast Asia’s potential as a global NEV manufacturing hub, Chinese automakers have significantly expanded their investments. In 2024, BYD and GAC Aion launched NEV plants in Thailand with annual production capacities of 150,000 and 50,000 vehicles, respectively. Meanwhile, BYD is set to open a state-of-the-art assembly plant in Cambodia with a projected annual output of 20,000 cars by late 2025.
Southeast Asia’s NEV market is poised for exponential growth. Market forecasts suggest that the compound annual growth rate for NEVs in six major ASEAN economies will range between 16% and 39% over the next decade. According to AlixPartners, by 2030, Chinese automakers are expected to control over 70% of their domestic market and sell approximately 9 million cars internationally, capturing a 33% share of the global market.
Additionally, a recent EY-Parthenon study predicts that the combined NEV market value of Indonesia, Malaysia, Thailand, and Singapore will skyrocket from $2 billion in 2021 to between $80 billion and $100 billion by 2035.
“We are witnessing a shift in NEV demand in developing markets,” said Zhang Yongwei of ChinaEV100, a leading research institute. “China is at the forefront of this transition, and emerging economies are driving the sector’s expansion.”
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