Chinese electric vehicle (EV) manufacturers are rapidly transforming Southeast Asia’s (SEA) automotive market. It is not only about volume but also influence. With price competitiveness, growing local production, teamwork with influencers, and financial partnerships, Chinese carmakers are reshaping local consumer preferences and redefining competition.
Chinese carmakers dominate the EV market
Chinese carmakers have made remarkable inroads into SEA, with BYD and SAIC Motor emerging as the leaders.
From 2019 to 2024, Chinese firms collectively quadrupled their market share from 12% to 50%, driven by a combination of affordability, innovation, and local partnerships
Source: Euromonitor International
This signalled a major shift in regional automotive dynamics.
BYD Co Ltd has a commanding lead in Malaysia, Singapore, Thailand and the Philippines. Strong local dealers like Vantage Automotive and RÊVER Automotive have enabled fast scaling. BYD’s premiumisation strategy has also paid off – its Denza MPV and Yangwang U9 have changed consumers’ impression of Chinese brands. 
SAIC Motor, through its Wuling and MG, leads Indonesia with a 38% share. Wuling’s success is rooted in its local production facility in Indonesia, which enables it to offer entry-level EVs like the Air EV at just USD16,000. With over 150 dealers in Indonesia, Wuling ensures strong after-sales support, which is critical for EV adoption.
Five key factors behind Chinese carmakers’ success
The rapid rise of Chinese EV makers in SEA is underpinned by five strategic pillars:
Local production and assembly: Chinese carmakers are investing heavily in local manufacturing to reduce costs and tariffs. BYD’s Thailand plant has a capacity of 150,000 vehicles annually. SAIC’s MG plant in Chonburi and Wuling’s factory in Indonesia further exemplify this strategy. Local production not only lowers prices but also aligns with government incentives, such as Thailand’s EV3.5 scheme and Indonesia’s VAT reductions for locally-produced EVs.
Battery supply chain localisation: Battery costs account for up to 40% of an EV’s price. Chinese battery giants like CATL and Gotion Hi-Tech are building massive ecosystems in Indonesia, including a USD6 billion battery plant. These investments reduce reliance on imports, cut costs by 10-15%, and create thousands of local jobs, making EVs more affordable and politically attractive.
Financing through local banks: Access to financing is critical for both consumers and dealers. UOB is a key enabler, offering green loans and credit facilities to Chinese carmakers like Changan and Great Wall Motors. In Indonesia, Bank BCA offers 0% loans for BYD buyers. These partnerships bridge the credit gap for new entrants and accelerate adoption.
Charging network partnerships: Chinese EV brands are leveraging both public and private charging networks. In Singapore and Malaysia, BYD and MG rely on providers like SP Group, Charge+ and Gentari. In Indonesia, Wuling collaborates with PLN and Voltron to expand fast-charging infrastructure. These partnerships ensure that EV buyers have access to reliable charging, a key barrier to adoption.
B2B alliances with ride-hailing and taxi operators and car rental firms: Fleet sales are a major growth engine. BYD has partnered with Grab to supply up to 50,000 EVs across six SEA markets. In Indonesia, Blue Bird operates over 200 BYD taxis. SAIC’s MG brand is rolling out 5,000 swappable EVs in Thailand through a partnership with UNEX EV. These alliances provide scale, visibility, and recurring revenue streams.
Opportunities and challenges ahead
The regional automotive market is transitioning from internal combustion engine (ICE) to EV. In 2024-2029, the EV regional volume share will increase from 7% to 16%, while the ICE share will decline from 88% to 78%. Hence, there is still growth space for EV manufacturers, including Chinese firms. Japanese, Korean and Western competitors must increase focus on EVs and launch more competitive models faster.
Meanwhile, local competition is intensifying. EV manufacturer VinFast dominates Vietnam and is expanding aggressively into Indonesia and the Philippines. To protect local jobs, SEA markets might adjust tariffs for imports, influencing Chinese manufacturers to increase SEA production capacity across the supply chain.
More details are in the white paper on Chinese brands disrupting SEA.
