Chinese EV Firms Expand ASEAN Supply Chain, Challenging Japanese and South Korean Automaker Positions

[CNMO Tech News] Chinese EV firms are rapidly expanding their influence in the ASEAN market. Besides exporting complete vehicles, they are also localizing the entire supply chain, posing a threat to the dominant Japanese and South Korean automakers.

BYD Song Ultra DM-i

According to local industry data, Thailand's EV sales in 2023 grew by 80% year-on-year, surpassing 120,000 units. Among them, BYD and other Chinese brands dominate the market. Mainstream models hold a 70% to 80% market share in the pure EV market, gradually squeezing the market space of Japanese fuel vehicles. In Indonesia, where Japanese brands account for over 80% of the overall auto market, BYD's retail sales reached 6,274 units in April this year, rising to third place in total brand sales with a market share of about 4.8%. Including other Chinese brands like Wuling and Chery, the total share approaches 10%. Hyundai, which once ranked first in Indonesia's EV market, is now only tenth in sales. In Singapore, BYD's market share surpassed 30% for the first time this April, and its full-year 2023 sales exceeded Toyota, which long held the top spot, taking the brand sales lead.

To further enhance competitiveness, Chinese automakers are advancing the construction of local ASEAN supply chains, enjoying zero-tariff policies within the region while avoiding tariff barriers in Europe and the US. After BYD's Thailand factory commenced production, a new factory with an annual capacity of 150,000 units will be built in Indonesia this year. JPMorgan data shows that major Chinese automakers such as BYD, Chery, and Changan will build 14 new energy vehicle factories overseas before 2026, including multiple projects in the ASEAN region.

Image from Internet

Impacted by competition from Chinese automakers, the capacity utilization rate of Hyundai's factory in Indonesia was only 47.3% in 2023, far lower than the 94.2% in India and 100% in the US. Industry insiders stated that as ASEAN countries promote electrification transformation as a national strategy, Chinese EV companies, leveraging supply chain, price, and technology advantages, are expected to see their local market influence continue to rise.