Chinesische Elektromobile werden in Südostasien wie wild verkauft, aber es gibt noch einige Hürden zu nehmen, bevor sie die Spitze erreichen können.

Now the whole world has to recognize that China is number one in the field of new energy sources globally.

Last year, a total of over 17 million electric vehicles were sold worldwide, of which 62% were Chinese brands. Especially in the emerging electric vehicle market in Southeast Asia, there have been repeated reports about the "Chinese automotive victory" recently.

"93% of the electric vehicles in Indonesia are of Chinese origin!"

"In the first half of 2025, the market share of Chinese electric vehicles in Malaysia reached 35%, securing the leading position in pure electric vehicles."

"Wuling Bingo exported 35,000 vehicles in Thailand in one quarter, which meant a market share of over 25%. Southeast Asia was 'conquered' by Wuling."

...

But how long will it take for Chinese cars to dominate the world?

The reality is complex.

Strong Upturn, but Not Yet Overwhelming Dominance

According to data from the China Association of Automobile Manufacturers, China's automobile export volume in 2024 was 5.859 million vehicles, representing an increase of 19.33% compared to the previous year. From January to April 2025, the export volume was 1.937 million vehicles, an increase of 6.02% compared to the previous year.

In the first half of this year, China's automobile export was 3.083 million vehicles, an increase of 10.4% compared to the previous year. Of these, 1.06 million electric vehicles were exported, an increase of 75.2% compared to the previous year.

The sales volume of Chinese automobile brands in the four major Southeast Asian markets of Indonesia, Malaysia, Thailand, and the Philippines increased by over 50% compared to the previous year.

Thailand, as the largest automobile - manufacturing country in Southeast Asia, is an important target for Chinese automobile manufacturers. Therefore, since the beginning of this year, Chinese automobile manufacturers have significantly accelerated their efforts to gain a foothold in Thailand.

At the recently held 46th Bangkok International Motor Show, Chinese automobile brands performed particularly well. Of the 26 major exhibitors, 10 were Chinese brands. Even half of the top 10 in the reservations were Chinese brands.

Bangkok Motor Show in April

If one had to choose a representative company, it would undoubtedly be BYD.

Since BYD delivered the first electric buses to the Thai market in 2013, it has now achieved a market share of nearly 40% in the Thai electric market.

In fact, it's not just BYD. In the first five months of this year, Chinese brands occupied 13 of the top 15 positions in the new registrations of electric vehicles in Thailand.

The top five positions are occupied by Chinese automobile manufacturers.

Image source: Autolifethailand Facebook

But the new king of electric vehicles is not yet the market leader.

According to an analysis by Bloomberg, the global sales volume of electric passenger cars from January to June 2025 was a total of 7.72 million vehicles, of which 2.449 million vehicles (31.7%) were sold on the foreign market. Of these, the foreign sales volume of Chinese automobile brands was about 310,000 vehicles (12.7%).

In summary, the actual market share of Chinese electric vehicles on the foreign market is only 4.0%.

Southeast Asia is still the domain of combustion engines.

According to data from PwC, the total number of motor vehicles in Southeast Asia in 2024 was about 70 - 80 million vehicles, of which about 800,000 - 900,000 were electric vehicles. The overall penetration rate is only 1 - 1.3%.

If only BEV (Battery Electric Vehicle) is calculated, the penetration rate is even below 0.5%.

However, the good news is that Bloomberg pointed out in a report that the dominance of Japanese combustion engines in Southeast Asia is weakening.

Since 2019, the sales volume of Japanese cars in Southeast Asian countries has been continuously declining: by 12% in Thailand, 6% in Indonesia, 5% in Malaysia, and even 18% in Singapore.

It's true that the rapid growth of Chinese electric vehicles in the Southeast Asian market is a real success story and has also written an important chapter in the globalization of the Chinese automobile industry. But impressive sales figures do not yet mean the establishment of market leadership. From the era of combustion engines to the new stage of electric vehicles, the competitive situation in the Southeast Asian market is far from settled.

For Chinese electric vehicles to truly gain the upper hand in Southeast Asia, an increase in sales volume is only the first step to "go global". To "stand firm", several hurdles still need to be overcome.

Brand Building: Invisible, but Everywhere Present

For a brand, brand power is undoubtedly the most valuable intangible asset.

Robert Woodruff, the former CEO of Coca - Cola, once said: "Even if all of Coca - Cola's global factories were burned down overnight, the factories could be back in operation within a month."

That's the true picture of strong brand power.

Japanese cars (especially Toyota) have created a strong user awareness and brand perception through decades of commitment in the Southeast Asian market.

In 1963, Toyota established its first foreign factory in Thailand, thus opening the story of the dominance of Japanese cars in the Southeast Asian market.

By 2022, Toyota had captured nearly 45% of the Thai automobile market with 282,700 vehicles sold, securing the top position in the industry.

Product quality is undoubtedly the foundation for building trust in a brand. But Chinese brands face significant challenges in this area.

Due to the lack of a legal age limit for cars, vehicles in Thailand generally have a long service life. The used - car market in Thailand is therefore very prosperous, and consumers attach great importance to the durability and reliability of products.

However, a preliminary research result by J.D. Power in 2024 among Thais interested in a new car shows that the main reason why the respondents do not consider Chinese brands is the concern about product quality.

Image source: J.D. Power

It's not just in Southeast Asia. Previously, the Russian automotive magazine "AUTONEWS" also pointed out that Chinese cars are more prone to rust.

But isolated cases that are exaggerated on the Internet become a major problem for consumers when making a purchase decision.

And it will take a long time for the perception of quality to really improve.

This requires that Chinese automobile manufacturers prioritize "quality first" in the long term and strictly control the quality of the entire product life cycle to change market perception and strengthen brand power.

Fortunately, there are good signs that Chang'an has established a research and development center in Thailand and SAIC MG is adapting its vehicles to local needs.

According to data from the J.D. Power Southeast Asia Report (2024), Chinese electric vehicles are currently accelerating the breakdown of the superiority of Japanese cars in the residual value rate in the Southeast Asian market. In the top 10 of the 3 - year residual value rate of electric vehicles in Thailand, Chinese brands have occupied seven positions.

The Sales and Service System is Also Important

The sales problem of cars is also a key problem.

It's an interesting phenomenon that the average income in Thailand is not particularly high. The average monthly salary is only about 3,100 yuan, but cars in Thailand are not cheap.

The Toyota Camry, which is offered for 145,800 yuan in China, costs up to 300,000 yuan in Thailand.

This leads to the question of how cars can be sold in Thailand when the income is so low and the cars are so expensive?

The answer is: credit.

For decades in Thailand, major Japanese automobile manufacturers have perfected automobile financing to financially support automobile sales.

Japanese brands like Toyota, in cooperation with local banks, offer Thais financing options with 0% equity, and the credit check only takes two hours.

For customers with poor creditworthiness, they offer loans through their own financial channels. Toyota's finance company even offers a term of up to 90 days to Southeast Asian dealers.

In comparison, some Chinese brands have deficits in the flexibility of financing options, interest - rate competitiveness, and the depth of cooperation with local financial institutions.

Zhang Yue, co - founder of "Malache Auto News", pointed out at an industry conference in June that in Indonesia, the approval rate for loans for used Toyota cars is 85%, while for Chinese brands it is only 37%.

This obviously increases the purchase threshold and financial risk for consumers.

Production workshop of the Great Wall New Energy Vehicle Manufacturing Base in Rayong, Thailand

With the change in consumption habits, most consumers today no longer just strive for a single product, but a "service experience over the entire product life cycle".

Put simply, in the past, "you bought a product", today, "you buy a product + service". But in the Southeast Asian market, the coverage and efficiency of the customer service network of Chinese brands are still insufficient.

Thanks to its more than 1,200 4S dealers in Thailand, Toyota only has a waiting period of three days for spare parts, while Chinese brands often rely on imports of core components, resulting in a significantly longer waiting period for customer service.

An analyst at the Thai consulting firm Differential Thailand pointed out: "The premium brands of Chinese automobile manufacturers are very strong in terms of technology and price, and Thai youths accept them very well. But whether they can compete with existing brands like Lexus depends on the reliability of customer service and other long - term aspects."

It seems that the improvement of customer service efficiency mainly depends on the proportion of locally produced components. But how difficult is localization in the Southeast Asian market actually?

The Most Difficult Challenge is Localization

Thailand not only requires assembly in Thailand but also has high requirements: the proportion of locally produced components must be at least 40%.

But most Thai suppliers focus on the production of simple components (e.g., wiring harnesses, interiors), while core components such as battery cells and electronic controls mainly have to be imported.

Although Thailand is the country with the best automobile supply system in Southeast Asia and has over 650 suppliers, the capacity for high - quality technologies is still very limited, and the local electric mobility industry and the pool of professional talents are relatively weak.

And each car consists of nearly ten thousand components, and the associated suppliers are very complex. Even checking the proportion of locally produced components requires enormous human and material resources.

In addition, the costs of setting up factories...