• SE Asia was the hottest major EV market globally in Q2, growing nearly 10X YoY driven by key countries in Indochina
• BYD took top position in unit sales share followed closely by domestic market favorite Vingroup
• Chinese OEMs advanced the most, underscoring strong demand for lower-tier price segments

Hong Kong, Jakarta, New Delhi, London, Boston, Seoul – September 21, 2023

According to Counterpoint Research’s latest SE Asia Passenger Electric Vehicle Tracker, Q2 2023 battery electric vehicle (BEV) unit sales in the region grew by 894%, driven by strong demand across Thailand, Vietnam, Indonesia, and Malaysia.

Base effects are in play as markets are very early stage, but significant progress is being made with EV share of overall passenger vehicle sales rising to over 6% during the quarter, with key Asian OEMs capitalizing on strong initial demand.

Passenger EV* Unit Sales Share and YoY Growth by Auto Group

Source: Counterpoint Research SE Asia Passenger EV Tracker. *Battery electric vehicles (BEV) only.

“What we’re seeing is just the beginning with SE Asia’s biggest markets starting to scale. It’s happening as government efforts to promote electrification dovetail with a flurry of products coming online that might not be budget, but are a lot more accessible to more buyers in the region,” says Soumen Mandal, Senior Analyst for Automotive. “Vietnam and Thailand are great examples, with automakers introducing lower-priced models targeting the broadest range of consumers.”

“The result has been a big decline in prices over the past year as OEMs like Vinfast and BYD introduced cars with better sticker appeal. Comparing the top 5 best sellers YoY, prices have come down over 20%.”

Chinese OEMs are set to become the biggest beneficiary of SE Asia’s appetite for EVs over the short term, and Thailand will be a hot spot as this new breed of automakers sets up shop in the Kingdom – the region’s auto manufacturing hub; traditional players like Toyota are leaving the door open as they falter in the transition to EVs.

“There’s a big window of opportunity especially for someone like BYD, which has enjoyed a massive home market head start,” notes Ivan Lam, Senior Analyst for Manufacturing.  “Scale and end-to-end manufacturing prowess gives it a competitive advantage few EV players can match – affordable cars, robust supply, more frequent product launches. This might not sound exciting in terms of traditional combustion engine vehicles, but in EVs, it’s revolutionary.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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