Thailand and Indonesia compete for leadership in ASEAN’s vehicle and EV markets
As of 2023, Thailand continues to lead vehicle production in the ASEAN region, with a total output of approximately 1.84 million vehicles, despite a slight decline of 2.22% from the previous year. Thailand remains a significant manufacturing hub, especially for pickup trucks, which account for 62% of its total vehicle production, while passenger cars represent 35%.
In comparison, Indonesia produced about 1.18 million vehicles in 2023, maintaining its position as the second-largest vehicle manufacturer in the region. Indonesia focuses more on passenger cars and motorcycles, and it is becoming an emerging hub for EV production as part of the government’s drive to electrify the transportation sector.
In terms of vehicle sales, Indonesia leads with more than 1 million vehicles sold in 2023, reflecting the strength of its domestic market. Thailand follows closely with 900,000 vehicles sold, where pickup trucks remain the most popular vehicle type, comprising 54% of domestic sales.
In 2023, the ASEAN region saw significant growth in the electric vehicle (EV) market, with a total of 300,000 new energy vehicles (NEVs) sold, representing 8% of the total automotive market. Of these, hybrid electric vehicles made up 4%, battery electric vehicles 3%, and plug-in hybrid electric vehicles 1%. Thailand led the way, accounting for around 64% of ASEAN’s NEV sales, followed by Indonesia at 19%, Malaysia at 8%, and Vietnam at 6%.
In terms of production, Thailand is emerging as a major EV manufacturing hub, supported by government incentives, tax breaks, and significant foreign investments, particularly from Chinese EV manufacturers such as BYD and Great Wall Motor. Thailand aims to produce 600,000 EVs annually by 2030, bolstered by policies like “30@30,” which targets 30% of domestic vehicle production to be zero-emission vehicles by 2030.
Meanwhile, Indonesia is also advancing its EV production efforts, with key investments in battery production as part of its “INDONESIA AUTOMOTIVE 4.0” strategy. Indonesia is focused on capitalising on its vast nickel resources to become a significant player in the EV battery supply chain.
Overall, while Thailand leads in both production and sales of EVs within ASEAN, Indonesia is rapidly expanding its capabilities, particularly in the electric two-wheeler and battery sectors. Both countries are positioning themselves as key EV hubs in the region.
Footnote:
* ASEAN stands for the Association of Southeast Asian Nations Countries which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
** Electric vehicles include Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), and Fuel Cell Electric Vehicle (FCEV).
