Chinese automakers are strengthening their presence in Southeast Asia


Chinese automakers reported strong sales growth in Southeast Asia last year, with their combined deliveries in Thailand, Indonesia, Malaysia and the Philippines rising more than 95% to 377,450 units in 2024 to 193,510, according to preliminary data released by local industry sources.

Combined sales in these four markets were down slightly to just 2.71 million units in 2025, meaning Chinese automakers doubled their combined share of the region’s markets last year to 14%, from 7% in 2024, mainly at the expense of underperforming Japanese automakers including Honda and Nehatsu.

While Thailand was the third largest market in Southeast Asia last year, it was the largest market for Chinese brands with more than 140,000 sales, accounting for 23% of total vehicle sales. Indonesia was the second largest market in the region for Chinese automakers with over 128,000 sales and a market share of 16%, followed by Malaysia with 59,990 units (7%) and the Philippines with 48,960 units (11%).

These market shares include only vehicles sold under Chinese brands and do not reflect partnerships between domestic brands and Chinese automakers, including Malaysia’s Proton, which produces a significant number of vehicles based on platform technologies purchased from its 49.9% Chinese shareholder, Zhejiang. Gilly holding group, and smaller-scale partnerships such as between Indonesia’s Horton Astana Electronics (Polytron) and China’s Skyworth Automobile, as well as Thailand’s Energy Absolute (EA) and EVE Energy/Sunwoda Mobility.

The strong growth seen by Chinese brands in the region last year was driven by increasing demand for battery electric vehicles (BEVs), a segment that Chinese automakers have dominated globally over the past few years. BEV sales in the four surveyed markets increased 105% last year to an estimated 264,000 units, with sales in Thailand up 80% to 120,000 units, followed by Indonesia with 143% growth to nearly 107,000 units, Malaysia with 30% to 107,000 units and Flipkart with 1900%. (1500+) 5,890 units (+90%). Chinese automakers accounted for about 90% of these sales.

BEV demand in the region has been driven by generous government incentives, including tax rebates for consumers and investment incentives for vehicle manufacturers, which have encouraged a growing number of Chinese brands to enter these markets and localize production, as they face sluggish demand and cutthroat competition in their home market. While some markets in the region have reduced some BEV incentives as early as 2026, including for built imports, many Chinese automakers have established strong dealer networks in the region and have already localized vehicle production.

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