Chinese Brand EVs Rapidly Taking Over SEA Car Market
See why Chinese brand EVs are becoming increasingly popular in SEA
According to research done by Mordor Intelligence, a market research firm, The Electric Vehicle (EV) market in South East Asia is about to enter a phase of rapid growth.
They back this up by saying that in 2021, the ASEAN EV market was valued at USD500 million and this number is projected to increase more than 5 times over to USD2.6 Billion in 2027.
However, current data shows that the EV market in SouthEast Asia is still in its infancy. This is proven by data provided from Singapore’s Land Transport Authority showing that as of May this year, only a measly 6 in 1,000 private cars in the country are pure EVs.
On the other hand, despite the number of EVs in Singapore only ranging between single and double digits from 2011 to 2016, the number of EVs skyrocketed to over 1,000 units in 2019, and between December of last year and May 2022, the number of total EVs rose from 2,942 to 4,054.
As far back as 2014, Chinese automakers saw the potential in Singapore and made preparations to enter the market. That same year, Singapore’s Agency for Science, Technology and Research (A*Star) signed an agreement with Chinese Automaker BYD to collaborate on developing EV technology for public transport.
Two years later, the Go-Ahead Singapore bus group started testing electric buses that were made by BYD and in 2017, a fleet of BYD electric taxis were already on the road.
One of the main reasons Chinese Automakers are heavily invested in Singapore is because with the country being a leader in public policy and innovation, there is more opportunity to shape EV policies there but China has made it clear that they want to enter markets like Thailand, Malaysia and other large South East Asian countries too.
They clearly made good on this promise as we already know Thailand is far ahead of the curve in ASEAN in terms of EV infrastructure and policies while in Malaysia, our local manufacturer Fieldman EV invested USD226 Million (RM1 Billion) into a new EV plant in Melaka as a joint venture with Changan Auto.
Couple this with the fact that Chinese EVs are usually cheaper than the competition and you have yourself a recipe for success. Alas, with the current shortage of raw materials, Chinese Automakers are forced to focus more on premium markets which would work against their lower prices.
What do you think? Will we see more Chinese EVs than Proton X50s on our roads in the years to come? I suppose we shall have to wait and see.
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