On EV industry race: Who will dominate SEA market?
27 Mar 20236 min read
Summary
- The article examines how the ASEAN electric‑vehicle (EV) market is becoming a battleground in which Chinese manufacturers, bolstered by cost‑advantages and strategic exports, are aggressively targeting dominance.
- It reviews how countries like Thailand and Indonesia are emerging as key hubs for EV production and demand, with local supply‑chain access to critical minerals and favourable policies making them central to the competitive dynamic.
- The authors warn that legacy automakers and regional manufacturers must act with urgency to align with the evolving ecosystem, as the first‑mover advantage is shifting to those who scale production, localise supply‑chains and capture the export‑oriented growth opportunities.
The Southeast Asia market is revving for a promising future in its electric vehicle (EV) industry, and select countries in the region are joining the hype. It was perpetuated by the global push towards sustainable consumption that led to the advent of eco-friendly cars.
This trend is gaining attention as the market aims to resonate with its more environmentally-conscious consumers. Such was part of the effort to mitigate climate change.
Notably, Southeast Asian countries are taking bolder steps towards their obligations under the Paris Climate Accords. They are lessening their dependence on fossil fuels and incentivizing the use of EVs.
Said efforts lean towards the grand vision of making the region a global EV hub. Governments as well as other involved stakeholders, now usher efforts on promotion, deployment, and adoption efforts.
Ramp-up adoption of EVs
With the goal of having EVs in the transportation sector, select Southeast Asian nations have launched a range of EV-related efforts. Such renders the takeoff of the EV industry and usher people to take part in the green mobility goal.
The program, first announced by Indonesia's Minister of Industry, Agus Gumiwang, in late 2022, aims to provide a $5,000 subsidy to electric car consumers.
EV giants and start-ups raise the bar
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“Hyundai envisions ASEAN to continue to follow the growth of vehicle technology. Electric vehicles are beginning to be produced, and we aim to be a solution to air pollution and fossil fuel shortages in the ASEAN region and worldwide,” Heo declared.
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