Four Key Consumer Insights Shaping Southeast Asia’s Electric Vehicle Market

As a key region globally, Southeast Asia (SEA)’s electric vehicle (EV) market is growing rapidly, fuelled by rising sustainability awareness among urban millennials and Gen Z, and a growing appetite for innovation. Consumer expenditure on vehicle purchases in the region is projected to surpass USD104 billion by 2029. EV (battery electric EVs and plug-in EVs) volume sales in light vehicles in SEA are set to reach 560,000 in 2029. 60% of car owners in Southeast Asia surveyed in 2025 believed that EVs are more sustainable, and 14% already drove electric vehicles, highlighting the region’s strong potential for continued growth.

Southeast Asia’s auto spending surges, outpacing peer markets

Southeast Asia is emerging as a powerhouse in automotive consumption. EV adoption has risen, driven by growing consumer appreciation of EVs, Chinese automakers’ expansion, improving charging networks, and local banks’ green financing packages.

In 2024, total consumer expenditure on vehicle purchases across six key markets (Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines) reached USD76 billion, and is set to grow at a robust 6% CAGR over 2024-2029.

Source: Euromonitor International

Singapore and Malaysia lead in average household automotive expenditure, owing to their high-income populations. Singapore stands out with an average household automotive purchase spend of over USD5,300 – higher than most of its regional peers. Singapore, Malaysia and Indonesia already registered higher average household expenditure on automotive purchases than China in 2024. The total number of households in Southeast Asia with a disposable income over USD100,000 is set to exceed 3 million in 2029 – a 29% increase from 2024. This economic momentum sets the stage for a rapid EV transition.

EV-positive segments gaining ground

As economic capacity grows, consumer readiness for EV adoption is increasing. A significant portion of Southeast Asian consumers are now classified as “EV-positive”: consumers who do not own EVs, but see their sustainability and technology benefits, and are financially able to overcome the initial cost barriers.

Indonesia and Malaysia each boast 29% shares of EV-positive consumers, with Thailand following closely, at 24%. These figures are well above the global average of 18%, positioning these countries as early adopters and growth engines for the regional EV market. Singapore, the Philippines and Vietnam trail behind, however, with EV-positive shares ranging from 11% to 13%.

This emerging segment is not only environmentally conscious but also tech-savvy and aspirational. Their openness to EVs presents an opportunity for automakers to introduce innovative, future-ready models tailored to local preferences.Sustainability is a key driver of EV adoption

Environmental consciousness has become a mainstream motivator for Southeast Asian consumers. 60% of car owners in the region believe EVs are more sustainable than traditional internal combustion engine (ICE) vehicles. In Indonesia, this sentiment is particularly strong, with 73% citing sustainability as a primary reason for considering an EV. Singapore (63%) and Thailand (59%) also show above-global-average alignment.

Beyond environmental benefits, EVs offer lower operating costs compared to Internal Combustion Engine (ICE) vehicles. With rising fuel prices and regular servicing costs for ICE vehicles, consumers are increasingly drawn to the long-term savings and efficiency of EVs. The dual appeal of sustainability and cost-effectiveness makes EVs a compelling choice for a growing segment of the population.

However, to fully capitalise on this trend, automakers must communicate these benefits clearly and consistently, especially to first-time EV buyers, who may still be weighing the pros and cons.

Infrastructure and high purchase costs remain major barriers

Despite growing interest, significant hurdles remain. Key challenges are the lack of charging infrastructure and the high upfront purchase cost of EVs.

64% of Southeast Asian consumers reported difficulty finding charging stations – particularly in Indonesia and Vietnam, where infrastructure development lags behind.

^{Source: Euromonitor International}

Affordability is another pressing concern. In Malaysia, 59% of consumers are classified as price-sensitive, as are 51% in Thailand. These consumers are interested in EVs but are deterred by high purchase prices, insurance costs and uncertain resale values.

These barriers highlight the need for targeted interventions, including government incentives and public-private partnerships for infrastructure, and for manufacturers to develop more affordable EV models.

Recommendations

To succeed in Southeast Asia’s evolving EV market, automakers must adopt a dual strategy: emphasise the sustainability and cost-saving benefits of EVs, while addressing affordability and infrastructure concerns head-on. This means investing in local partnerships to expand compatible charging networks, offering flexible financing options, and tailoring marketing to highlight long-term value. By aligning with the region’s eco-conscious, tech-forward consumers, brands can position themselves at the forefront of Southeast Asia’s electric mobility revolution.

Read our report Voice of the Consumer: Mobility 2025 Key Insights for more analysis and consumer insight.