ASEAN (1): Accelerating shift to EVs, and market entry of Chinese OEMs

Thailand introduces subsidies for EVs; SK On and LGES to build battery plants in Indonesia



  The ASEAN market recently has been implementing various measures to realize a decarbonized society, and as part of these measures, it is also accelerating the popularization and expansion of electric vehicles (EVs).

  Aiming to become an EV production hub in the ASEAN region, Thailand has introduced subsidy programs and tax incentives for EVs and batteries. A number of Chinese manufacturers have entered the Thai EV market, and many are building EV factories.

  Indonesia is also aiming to become an EV production hub as well as a production hub for EV batteries using domestic nickel ore.

  Malaysia aims to have EVs account for 15% of its vehicle sales by 2030 and has introduced tax incentives.

  The Philippines plans to launch its “Comprehensive Roadmap for the EV Industry” (CREVI) in 2023. This will include reducing import tariff rates on EVs and related components.

  To popularize EVs, Vietnam will lower the special consumption tax on EVs and exempt them from registration fees. VinFast LLC, an emerging Vietnamese EV manufacturer, has begun exporting to the U.S. and ASEAN countries.

  Singapore plans to phase out internal combustion engine vehicles by 2040. To expand the popularization of EVs, 45% of the additional EV registration fees are refunded.

  This Part 1 of the two part report series focuses on the electrification policies of ASEAN countries, EV launch and production plans, and EV battery manufacturing plans. In the second part, "ASEAN (Part 2)," the focus of the report will be on production, exports, and sales in the ASEAN market, as well as sales forecasts by GlobalData.

Dolphin VF 3
BYD's “Dolphin” subcompact hatchback EV (pre-orders in Thailand started in March 2023) VinFast's “VF 3” compact electric SUV (scheduled to begin deliveries in Vietnam in Q3 2024) (Source: VinFast LLC)


Related reports:
Chinese OEM Overseas Expansion Activities: SAIC, Chery, Dongfeng, Changan (Jun. 2023)
ASEAN Vehicle Sales and Production Update (Q1 2023) (May. 2023)
Bangkok International Motor Show 2023 (2): Colorful Experience (Apr. 2023)
Bangkok International Motor Show 2023 (1): Colorful Experience (Apr. 2023)
Chinese OEM Overseas Expansion Activities: BYD, Geely, Great Wall, NIO, Xpeng (Apr. 2023)
Arun Plus: The First of Thailand, EV Automotive Industry (Mar. 2023)
Indonesia: Utilizing Nickel to Build EV Supply Chain (Jan. 2023)
Thailand: EV subsidies and tax incentives, Chinese OEMs launching budget EVs (Dec. 2022)
ASEAN: Promoting use and production of EVs to achieve carbon neutrality (Jul. 2022)


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