ASEAN (1) EV Promotion Policies; Increasing Entry of Chinese OEMs

Thailand: BYD and Wuling begin EV production, Indonesia: Hyundai and LGES build JV battery plant

2024/09/04

Summary
Electrification policies and EV launch plans of ASEAN countries (Overview)
Introducing EVs to the ASEAN market and building manufacturing sites
Thailand's electrification policy: New EV preferential policies to be implemented from 2024 to 2027
Indonesia's electrification policies: CATL and LGES to build battery plants
Malaysia's electrification policy: Road tax on EVs/FCVs will be levied according to motor output from 2026
Electrification policies in the Philippines, Vietnam, and Singapore

Summary

The ASEAN market is moving toward the electrification of vehicles with the goal of achieving carbon neutrality. To promote the spread of electric vehicles (EVs), the various countries are maintaining tax incentives and subsidy programs for EVs.

Thailand continues to offer subsidy programs and tax incentives with the aim of becoming a manufacturing hub for EVs and EV batteries in the ASEAN region, but with reduced subsidies starting in 2024. A number of Chinese automakers have entered the Thai EV market, and many of them are rushing to build EV plants because they are obliged to produce EVs in Thailand with the application of government subsidies.

Indonesia is also aiming to become an EV and EV battery manufacturing hub. The government will also continue to offer exemptions from value-added taxes, sales taxes on luxury goods, and import duties until 2024-2025.

Malaysia has set a target of 20% electrified vehicles (EVs + HVs) as a percentage of new vehicle sales by 2030, and is working to promote the spread of EVs by offering exemptions and reductions on import tariffs, excise taxes, sales taxes, road taxes, etc.

The Philippines issued a presidential decree in January 2023 exempting EVs and components from import duties. In May 2024, the decree was revised to include HVs and PHVs in the scope of import duty exemptions.

Vietnam will continue to lower the special consumption tax on EVs and exempt them from registration fees to popularize EVs. Also, corporate tax exemptions are available for the manufacture of EVs and their key components. Vietnamese startup EV maker VinFast LLC will build a plant in India, but has postponed plans to build a plant in the U.S., with production expected to begin in 2028.

Singapore will no longer allow new registrations of diesel vehicles from January 1, 2025. The government is refunding 45% of the additional registration fee to encourage the purchase of EVs, but the limit will be lowered and the measure will be extended until the end of 2025.

This Part 1 of the 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 (2)," the focus of the report will be on production, exports, and sales in the ASEAN market, as well as sales forecasts by GlobalData.


Neta Auto’s electric SUV Neta V-II (production began in Thailand in March 2024) (Photo: Neta brand of Hozon New Energy Automobile Co., Ltd.)	Wuling's Cloud EV electric MPV (launched in Indonesia in April 2024) (Photo: Wuling)

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