Thailand Dominates The Southeast Asian (SEA) BEV Market As BEV Sales Soar

(CTN NEWS) – According to the latest research from Counterpoint’s SEA Passenger Electric Vehicle Model Sales Tracker, the sales of battery electric vehicles (BEVs) in Southeast Asia (SEA) witnessed an impressive growth of nearly 10 times Year over Year (YoY) during the first quarter of 2023.

This significant surge contributed to the BEV market share in total passenger vehicle sales, which reached 3.8% in Q1 2023 compared to a mere 0.3% just one year ago.

Thailand emerged as the clear leader in the region, accounting for over 75% of all BEV sales, followed closely by Indonesia and Vietnam.

Additionally, in terms of the proportion of BEVs in total passenger vehicle sales, Thailand also stood at the forefront, with Singapore and Vietnam following closely behind.

However, the sales of plug-in hybrid electric vehicles (PHEVs) experienced a more modest YoY growth of 5.8% in the same period.

Thriving Electric Vehicle Market in Southeast Asia (SEA) and the Rise of Chinese Auto Groups

Commenting on the dynamics of the market, Research Analyst Abhilash Gupta stated that the efforts led by Thailand’s government to promote electric vehicle (EV) sales have yielded positive outcomes, and Indonesia and Vietnam are also showing promising performance in the region.

However, Malaysia, Philippines, and Myanmar still require additional regulatory support and encouragement to foster EV growth.

Despite overall passenger vehicle sales remaining relatively stagnant, the sales of Battery Electric Vehicles (BEVs) have experienced significant and rapid expansion.

Moreover, the market for Hybrid Electric Vehicles (HEVs) has witnessed remarkable growth in Southeast Asia (SEA), playing a pivotal role in the transition from traditional Internal Combustion Engine (ICE) vehicles to EVs.

Gupta further added that Chinese auto groups are experiencing rapid growth and have outpaced their competitors in the SEA region.

Their market share has surged from 38% a year ago to nearly 75% currently.

In the first quarter of 2023, BYD Group emerged as the leader in the BEV segment in SEA, capturing the majority of sales, followed by Hozon New Energy and SAIC Group.

Together, these top three groups accounted for over 68% of the BEV market.

In the Plug-in Hybrid Electric Vehicle (PHEV) market, Geely Holding Group claimed the top position, followed by BMW Group and Mercedes-Benz Group.

Among specific models, BYD’s Atto 3 proved to be the best-selling BEV across SEA, followed by the Neta V and Tesla Model Y. In the PHEV category, Volvo’s XC60 secured the highest sales, followed by the BMW 3 series and Mercedes-Benz E-Class.

Thailand’s Ambitious Efforts to Become a Global Hub for Electric Vehicle Production Propel SEA Market Prospects

Discussing the market prospects, Senior Analyst Soumen Mandal highlighted that Thailand’s government is making ambitious efforts to position the country as a global hub for electric vehicle (EV) production.

Alongside offering subsidies and tax incentives, Thailand has seen a significant increase in foreign direct investment (FDI) in its EV sector over the past year.

Notably, several Chinese automakers, such as Great Wall Motors, BYD, Hozon New Energy, and Changan Automobile, have expressed interest in establishing or have already begun constructing production facilities in Thailand.

Similarly, Indonesia announced a subsidy package in March 2023 to promote the purchase and local manufacturing of EVs, which is expected to further accelerate EV production and sales in the region.

Mandal emphasized that the presence of Chinese automakers in the Southeast Asian (SEA) EV market is set to strengthen as they establish regional manufacturing bases, driving further growth in the EV sector.

Overall, the sales of EVs in the SEA region are on an upward trajectory, and the outlook appears promising. There is an expectation that the share of Battery Electric Vehicles (BEVs) in total vehicle sales will reach 6% by the end of this year.

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