Chinese automakers strengthen their presence in Southeast Asia

Chinese automakers reported beardown income maturation successful Southeast Asia past year, with their combined deliveries successful Thailand, Indonesia, Malaysia and the Philippines surging by 95% to implicit 377,450 units from 193,510 successful 2024, according to preliminary information released by section manufacture sources.

Overall income successful these 4 markets were conscionable somewhat little astatine 2.71 cardinal units successful 2025, meaning that Chinese automakers doubled their combined stock of the region’s markets past twelvemonth to 14%, from 7% successful 2024, chiefly astatine the disbursal of underperforming Japanese automakers including Honda, Nissan and Daihatsu.

While Thailand was the third-largest marketplace successful Southeast Asia past year, it was the largest marketplace for Chinese brands with implicit 140,000 sales, accounting for 23% of full conveyance sales. Indonesia was the second-largest marketplace successful the portion for Chinese automakers with implicit 128,000 income and a marketplace stock of 16%, followed by Malaysia with 59,990 units (7%) and the Philippines with 48,960 units (11%).

These marketplace shares lone see vehicles sold nether Chinese brands and bash not bespeak partnerships betwixt home brands and Chinese automakers, including Malaysia’s Proton which produces a important fig of vehicles based connected level technologies derived from its 49.9% Chinese shareholder Zhejiang Geely Holding Group, and smaller-scale partnerships specified arsenic that betwixt Indonesia’s Hartono Istana Electronic (Polytron) and China’s Skyworth Automobile and besides that betwixt Thailand’s Energy Absolute (EA) and EVE Energy/Sunwoda Mobility.

The beardown maturation seen successful the portion by Chinese brands past twelvemonth has been driven by surging request for artillery electrical vehicles (BEVs), a conception that Chinese automakers person travel to predominate globally implicit the past fewer years. BEV income successful the 4 markets surveyed roseate by 105% to an estimated 264,000 units past year, with income successful Thailand surging by 80% to implicit 120,000 units, followed by Indonesia with 143% maturation to astir 107,000 units, Malaysia with 30,850 units (+109%) and the Philippines with 5,890 units (+90%). Chinese automakers accounted for astir 90% of these sales.

BEV request successful the portion has been driven by generous authorities incentives, including taxation discounts for consumers and concern incentives for conveyance manufacturers, which person encouraged a rising fig of Chinese brands to participate these markets and localize production, arsenic they look sluggish request and cut-throat contention successful their location market. While immoderate markets successful the portion reduced immoderate BEV incentives astatine the opening of 2026, including for built-up imports, astir Chinese conveyance manufacturers person established beardown trader networks successful the portion and person already localized conveyance production.