The adoption of electric vehicles (EVs) is gaining momentum in Southeast Asia, driven by the influx of Chinese automakers offering attractive deals and advanced features. Malaysian Vincent Hor recently purchased a BYD Atto 3 at a 27% discount, citing its advanced features such as voice commands and a rotating touchscreen. Hor acknowledges that his car may have a shorter lifespan than a gasoline car, but views it as a necessary upgrade to keep up with the latest technology.
The region’s EV sales grew 79% year-on-year in the first half of 2025, with Chinese original equipment manufacturing (OEM) accounting for over 57% of total EV sales. Nearly 18 Chinese OEMs are operating in the region, with BYD, GAC Group, and Great Wall Motor leading the market. However, the aggressive pricing strategies employed by Chinese automakers are raising concerns about sustainability and the impact on local economies.
The price war is not beneficial to manufacturers, buyers, or resellers, according to Dennis Chuah, president of the Electric Vehicle Association of Malaysia. Chuah adds that such practices erode buyers’ confidence as car values decline. Despite these concerns, Chinese automakers are capitalizing on EV incentives rolled out by Southeast Asian governments to reduce carbon emissions.
In Thailand, Chinese-made vehicles are being stored in large numbers near Laem Chabang Port, highlighting the country’s growing role in the regional EV supply chain. In Singapore, BYD was the bestselling car brand in the first half of 2025, surpassing Toyota. In Vietnam, local brand VinFast dominated the market with 87,000 units sold in 2024, 2.5 times more than the previous year.
The rise of Chinese automakers is eroding the longstanding lead of Japanese carmakers, whose cautious approach to electrification has left gaps in the market. Japanese OEMs in the ASEAN-6 nations fell to 63.9% in 2024 from 68.2% in 2023, according to PwC. However, industry experts believe that Chinese companies are still able to sell cars at much higher prices in the region than domestically.
In the longer term, competition is expected to intensify as more Chinese brands enter Southeast Asia and set up production capacity in Thailand and Indonesia. BYD has begun exporting EVs made in its Rayong factory to Europe, and is constructing a $1.3 billion manufacturing plant in Indonesia. Chinese companies will account for 30% of worldwide vehicle sales by 2030, with the largest growth anticipated in emerging markets such as Southeast Asia, the Middle East, Africa, and South America.
However, the sector is expected to undergo consolidation, with only 15 of China’s 129 EV brands in 2024 projected to remain financially viable by 2030. Neta, a financially stressed Chinese EV maker, has slashed the number of showrooms and service centers in Thailand, leading to complaints from owners about slow repairs and long waiting times for parts. Despite these challenges, buyers like Hor are enjoying the electric features of their vehicles, with Hor stating that he is “just following the trend to show off, even if I might take a loss later.”