BANGKOK (Reuters) – Chinese automakers dominate Southeast Asia’s fastest-growing electric car market, selling three out of every four EVs in the first quarter, research firm Counterpoint Research said on Thursday.
Thailand – the region’s main auto manufacturing hub – is driving the transition, with the country accounting for nearly 79% of all EVs sold in Southeast Asia in the first quarter, Counterpoint said.
Thailand has given incentives to consumers and subsidies to automakers to build more EVs locally. That has attracted investment by Chinese automakers in local production, including Great Wall Motor and BYD.
By 2030, Thailand aims to convert about 30% of its annual production of 2.5 million vehicles to EVs.
In total, Chinese EV makers have committed to investing at least $1.44 billion in setting up production facilities in Thailand, where the auto industry has been dominated by Japanese companies for decades.
“Chinese auto groups are experiencing rapid growth and outpacing their competitors in the SEA (Southeast Asia) region, their market share rising from 38% last year to nearly 75%,” said Counterpoint analyst Abhilash Gupta.
Across the region, the share of EVs in total passenger vehicle sales rose to 3.8% in the first quarter, from 0.3% a year earlier, according to Counterpoint.
BYD’s Atto 3 was the best-selling EV in the region, followed by the Neta V made by Hozon New Energy Automobile, which operates a local Thai production facility, and Tesla’s Model Y, it said.
Given China’s expanding EV market, Counterpoint said the share of EVs as a percentage of total car sales in Southeast Asia could reach 6% by the end of 2023.
Indonesia, Thailand and Malaysia are the largest car markets in Southeast Asia. Counterpoint includes those markets as well as Vietnam, the Philippines, Singapore and Myanmar in its analysis of EV sales in the region.
(Reporting by Devjyot Ghoshal; Editing by Emma Rumney)
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