While electric vehicle (EV) sales are slowing down in China, Europe and the United States, that’s not the case in Southeast Asia.
The region, which has nearly 700 million people, is in the early phase of EV growth led by China’s juggernaut BYD and Vinfast from Vietnam.
The enthusiatic reception to EVs also means sales of traditional combustion engine cars from Japanese and Korean makes are eroding, Counterpoint Research said in a report by Reuters.
EV sales in the region more than doubled from January to March compared to the previous year, while internal combustion engine (ICE) car sales dropped by 7%.
Japanese and Korean automakers are lagging in EV adoption, allowing Chinese original equipment manufacturers (OEMs) to dominate, with over 70% of EV sales coming from Chinese brands.
Thailand, Southeast Asia’s second-largest economy, is at the forefront with significant investments in EV production, accounting for 55% of the region’s EV sales.
Vietnam also saw robust growth, with battery electric vehicle (BEV) sales soaring by over 400%. BYD leads the regional market with a 47% share, followed by VinFast.
In contrast, Tesla’s market share in the region fell to 4%.
Countries in the region like Thailand and Indonesia are offering incentives to boost EV demand and attract investments from Chinese carmakers.
