On the streets of Southeast Asian countries such as Thailand, Laos, Singapore, and Indonesia, one item "Made in China" is becoming popular, and that is China's electric vehicles.
According to People's Daily Overseas Network, China's electric vehicles have made a big push into the international market, and their market share in Southeast Asia has increased significantly in recent years, accounting for about 75%. Analysts point out that high-quality and affordable products, corporate localization strategies, demand for green travel, and subsequent policy support are the keys to the success of Chinese electric vehicles in Southeast Asia.
On the streets of Vientiane, the capital of Laos, electric vehicles produced by Chinese companies such as SAIC, BYD, and Nezha can be seen everywhere. Industry insiders said: "Vientiane is simply like an exhibition for Chinese-made electric vehicles."
In Singapore, BYD is the best-selling electric car brand and currently has seven branches, with plans to open two to three more stores. In the Philippines, BYD hopes to add more than 20 new dealers this year. In Indonesia, Wuling Motors' first new energy global model "Air ev" performed well, with sales increasing by 65.2% in 2023, becoming the second most purchased electric vehicle brand in Indonesia.
Thailand is the country with the largest number of electric vehicle sales in Southeast Asia. In 2023, Chinese automakers accounted for about 80% of Thailand's electric vehicle market share. Thailand's three most popular electric car brands of the year are all from China, namely BYD, Nezha and SAIC MG.
Analysts believe that there are many factors responsible for the success of Chinese electric vehicles in Southeast Asia. In addition to the advanced technology and innovative functions of the product itself, good comfort, and reliable safety, the localization efforts of Chinese companies and local policy support are also important.
In Thailand, Chinese electric car manufacturers have formed partnerships with well-known local companies. For example, BYD has cooperated with Rever Automotive Company and designated it as BYD's exclusive dealer in Thailand. Rever Automotive is backed by Siam Automotive Group, known as the “King of Thailand’s Cars”. SAIC Motor has partnered with Charoen Pokphand Group, Thailand's largest private company, to sell electric vehicles in Thailand.
By partnering with local conglomerates, Chinese electric vehicle manufacturers can take advantage of local companies' mature retail networks. In addition, they can hire local professionals to design marketing strategies that best suit Thailand's national conditions.
Almost all Chinese electric vehicle manufacturers entering the Thai market have already localized or committed to localizing their production lines. Establishing a production base in Southeast Asia will not only reduce local production and distribution expenses for Chinese electric vehicle manufacturers, but will also help improve their visibility and reputation.
Driven by the concept of green travel, Southeast Asian countries such as Thailand, Vietnam, and Indonesia are formulating ambitious goals and policies. For example, Thailand strives to make zero-emission vehicles account for 30% of new car production by 2030. The Lao government has set a goal of electric vehicles accounting for at least 30% of the country's car fleet by 2030, and has formulated incentives such as tax incentives. Indonesia aims to become a leading producer of EV batteries by 2027 by attracting investment through subsidies and tax breaks for electric vehicle and battery manufacturing.
Analysts pointed out that Southeast Asian countries are actively attracting Chinese electric vehicle companies, hoping to cooperate with established Chinese companies in exchange for market access for technology, so as to achieve rapid development of their own electric vehicle industry.
Post time: Mar-20-2024