Abstract

For decades, Southeast Asia’s automotive market was defined by Japanese-brand dominance, gasoline two-wheelers, and modest electrification ambitions. That picture has changed dramatically. As of late 2025, ASEAN countries now rank among the highest EV (electric vehicle) adoption markets in the world — overtaking the United States, the United Kingdom, and the European Union on key penetration metrics.¹

This article examines the accelerating EV transition across Southeast Asia, identifies structural market opportunities arising from this shift, and illustrates how regional players, particularly those native to ASEAN, are best positioned to capitalize on them. It concludes with practical implications for investors and market entrants.

Market overview: Southeast Asia EV by the numbers

The ASEAN EV market was valued at approximately USD 4.6 billion in 2025 and is projected to reach USD 6 billion in 2026, before scaling to USD 23.6 billion by 2031, at a compound annual growth rate of 31.6%.² By a separate estimate, the market could generate annual sales opportunities of USD 80–100 billion by 2035, up from just USD 2 billion in 2021.³

The table below summarizes EV market status across ASEAN’s five largest automotive markets as of 2025:

Table 1: Southeast Asia EV market status: 5 key markets (2025)

B&Company’s synthesis

In Southeast Asia, electric car sales grew by nearly 50% in 2024, representing 9% of all car sales across the region. Among 5 five markets highlighted above, Vietnam and Thailand recorded the highest individual shares.⁸

Policy as the engine: Governments are driving the transition

The Southeast Asia EV surge is not purely market-driven; it has been actively engineered by government policy, and understanding those policies is essential for any market entry strategy.

Indonesia has deployed two powerful levers: reduced value-added tax on EV sales meeting local content thresholds, and temporary import tariff cuts for manufacturers committing to local production by 2026. The result: as of mid-2025, seven manufacturers had committed to establishing local facilities, including Aion, Gili, Maxus, and BYD (China), Citroën (France), Volkswagen (Germany), and VinFast (Vietnam), alongside Chinese battery giant CATL brand.⁴

Thailand‘s “30@30” strategy targets 30% zero-emission vehicles by 2030 and 100% by 2035.⁵ Backed by its EV3.5 incentive scheme, the country now hosts over 3,700 public charging stations with 11,600 connectors, more than 6,000 of which are fast DC chargers.⁵

Vietnam has combined tax incentives, reduced registration fees, and public transport electrification mandates to create a favorable environment for both domestic producers and infrastructure developers.⁵ VinFast’s flagship VF 3 became the best-selling car in Vietnam in 2025, with 75% of sales going direct to consumers, a sharp turnaround from its earlier fleet-first strategy.⁴

The policy environment across ASEAN is not uniform, but the direction is consistent: governments are using manufacturing localization requirements, fiscal incentives, and infrastructure spending to accelerate the Southeast Asia EV transition and attract foreign investment simultaneously.

Case study: VinFast in Indonesia — A regional blueprint

VinFast’s expansion in Indonesia represents an ambitious Southeast Asia EV market entry by any regional player to date, and a model that other investors are watching closely.

The company launched its Subang plant in West Java in December 2025, just 17 months after breaking ground, a facility representing an initial investment of USD 200 million with capacity for 50,000 vehicles per year, with expansion plans targeting 350,000 units annually.⁶ The plant produces right-hand drive versions of the VF3, VF5, VF6, and VF7 e-SUVs, and is positioned as VinFast’s right-hand-drive export hub for APAC markets including Thailand, Malaysia, and Australia.⁶

The Indonesia strategy is deliberately integrated: vehicle sales and dealer networks are paired with ride-hailing fleet operations (Xanh SM taxis, expanded through a partnership with Gojek’s Green SM feature), V-Green charging infrastructure, and financial institution partnerships.³ In February 2026, VinFast signed e-scooter MoUs with seven Indonesian dealer groups, signaling further expansion into the two-wheeler segment.⁷

What market research reveals: A discussion with Central Insight Indonesia

B&Company’s team recently held a discussion with Central Insight Indonesia, a Jakarta-based market research firm with direct visibility into Indonesian consumer behavior and the industry sectors, to understand how VinFast is being received in the market and what structural forces are shaping EV adoption more broadly. The following reflects insights shared during that conversation.

“We believe that VinFast still has a lot of room for growth in Indonesia, despite currently already meeting its sales target since expanding to this market.
This is a great timing for market expansion for EV makers, as there are several driving factors that can lead people to shift from ICE cars to EVs:

– EVs have been widely accepted, especially in big cities. Now, many people no longer see EVs as a second option to ICE cars but have been considering them as the first option as well. Public charging infrastructure, mainly in Java Island, is well developed, so the public’s worry about limited charging stations has been significantly decreasing compared to a few years ago. As of December 2025, Indonesia has 4,778 public charging stations and is targeting 192,253 units across 3,099 locations by 2034. The 2034 target is based on a projection of a 4W EV population of 2.8 million units that year. ⁹

– The rush hour traffic in Indonesia’s capital city, Jakarta, has been defined by the odd-even policy, where the last digit of the car’s license plate should match the date to determine if the car is allowed to enter Jakarta’s main roads during rush hour. However, this policy is not applicable to EVs, prompting many people who commute daily to Jakarta to own an EV due to its flexibility during rush hour.

– The retail fuel supply situation in Indonesia has been uncertain since last year, as the private fuel companies sometimes have supply shortages, while many people prefer private fuel retailers for their great services and high product quality. The non-subsidized fuel and diesel prices had also been skyrocketing due to the geopolitical conflict in the Middle East, further burdening people’s fuel expenses. Therefore, EVs have become a more reasonable option.

– Pricing-wise, VinFast is on the competitive side, offering great value for money. Compared to ICE cars in the low- to mid-pricing segment, EVs in a similar price range typically have better build quality and more features, which are also the main attractions for consumers beyond low operating and maintenance costs. The competitive pricing is also supported by the government’s incentives.”

— Central Insight, an Indonesian market research firm, as discussed with B&Company.

This insight aligns with B&Company’s observation of EVs’ regional landscape: To many people in Southeast Asia’s major cities, EVs are now a first-choice purchase, not a backup. Fuel supply uncertainty is quietly driving this shift in ways that aggregated data doesn’t yet reveal. And in the mid-range segment, value for money is a far more important deciding factor than environmental friendliness—a difference that will directly shape how manufacturers position their products and structure financing packages.

Where the opportunities exist

The Southeast Asia EV transition is not a single opportunity; it is a cluster of interconnected market openings across the value chain. The table below maps the key opportunity areas by segment and leading markets:

Table 2: Southeast Asia EV opportunity map by segment (2025–2030)

B&Company’s synthesis

Conclusion

Southeast Asia’s EV transition is no longer a forecast; it is happening now, at a pace that is outrunning most market projections. Governments are committed, consumer attitudes are shifting, and regional players with the right combination of price, ecosystem, and local presence are already capturing share.

For investors and market entrants, the window is open but not indefinite. The markets that reward early movers, Indonesia, Vietnam, and Thailand, are also attracting the most competition. Getting in requires more than capital; it requires ground-level understanding of what consumers actually want, how policies are being implemented, and where the infrastructure gaps are widest.

Read more

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Sources & References

1. Ember Energy. ASEAN Emerges as a New Leader in Global EV Adoption. December 16, 2025. https://ember-energy.org/latest-updates/asean-emerges-as-a-new-leader-in-global-ev-adoption/

2. Mordor Intelligence. ASEAN Electric Vehicle Market — Growth, Share, Size & Industry Outlook. January 2026. https://www.mordorintelligence.com/industry-reports/asean-electric-vehicle-market

3. EY-Parthenon. How to Seize Opportunities Across Southeast Asia’s EV Value Chain. https://www.ey.com/en_my/insights/strategy/how-to-seize-opportunities-across-southeast-asias-ev-value-chain

4. SEADS / Asian Development Bank. Southeast Asia Leads Global Boom in Electric Vehicle Sales. March 2026. https://seads.adb.org/news/southeast-asia-leads-global-boom-electric-vehicle-sales

5. GM Insights. ASEAN Electric Vehicle Market Size, Growth Report 2025–2034. https://www.gminsights.com/industry-analysis/asean-electric-vehicle-market

6. Mission Media Asia. Why VinFast’s Indonesia Plant Matters for Its Regional Brand Positioning. December 17, 2025. https://missionmedia.asia/why-vinfasts-indonesia-plant-matters-for-its-regional-brand-positioning/

7. VinFast. VinFast Officially Enters Indonesia’s E-Scooter Market, Partners with Strategic Dealers. February 9, 2026. https://vinfastauto.us/investor-relations/news/vinfast-officially-enters-indonesias-e-scooter-market-partners-with

8. IEA. Global EV Outlook 2025 — Executive Summary. https://www.iea.org/reports/global-ev-outlook-2025/executive-summary

9. CNN Indonesia. Indonesia Currently Has 4,778 SPKLUs, Targeted at 192 Thousand in 2034. https://www.cnnindonesia.com/otomotif/20260203162604-603-1324154/indonesia-punya-4778-spklu-saat-ini-ditargetkan-192-ribu-pada-2034