Decoding the Southeast Asian Market: The Rising Share of Electric Vehicles and the Reshuffle of Brand Landscape - The February Changes in the Southeast Asian Automotive Market

In February, the Southeast Asian automotive market continued the transformation momentum of 2025, but the driving logic is changing. The expiration of Thailand's subsidy policy triggered a rush to buy, Singapore plans to follow up on the new regulations for hidden door handles, the pattern of electric vehicle brands in Malaysia has been reshuffled, and the local manufacturing in Indonesia is accelerating - the three main lines of policy adjustment, market differentiation, and competition upgrading are intertwined, outlining a new picture of the regional market.

Policy Adjustment: Subsidy Decline and New Regulations in the Pipeline

This month, the policy orientation of the major automotive markets in Southeast Asia has changed significantly. On the one hand, the previous stimulus policies are gradually coming to an end; on the other hand, new technical standards and industrial guidance policies are being planned.

Thailand's electric vehicle subsidy policy (EV 3.0) ended on January 31, 2026. Consumers rushed to register to catch the last bus of the preferential policy, driving the number of new pure - electric vehicle registrations in January to soar to 42,193, a year - on - year increase of 240.9% and a month - on - month increase of 189.4%, setting a new monthly record. As the policy dividend fades, the market will enter a normal competition stage driven by product strength and service.

After China announced that new cars must be equipped with mechanically released door handles from 2027, Singapore's Land Transport Authority is discussing with the industry and plans to require electronic doors to add an emergency mechanical unlocking function and plan to introduce a buffer period. This potential policy adjustment will put forward higher safety requirements for the design of intelligent electric vehicles.

Data from Indonesia's Investment Coordinating Board shows that the investment in the automotive sector from 2023 to 2025 reached 36.1 trillion Indonesian rupiah, a surge of 147% compared with the previous period, promoting high - speed growth in industrial investment and sales. As the initial fiscal incentives expired at the end of 2025, the industry focus is shifting to deepening local manufacturing and increasing the localization rate. The industry is calling on the government to introduce more non - fiscal support measures to maintain the growth momentum.

Market Dynamics: Accelerated Penetration of Electric Vehicles and Differentiated Brand Patterns

Driven by policy guidance and consumption upgrading, the penetration rate of electric vehicles and the brand patterns in the major Southeast Asian markets show obvious differentiation.

Electric vehicles became the most popular vehicle type in Singapore for the first time. In 2025, the number of new car registrations in Singapore was nearly 53,000, of which electric vehicles accounted for 44.9%, surpassing fuel - powered vehicles for the first time to become the market's main force. BYD, with nearly 12,000 vehicles and a market share of 21.2%, remained the best - selling brand, with sales surging by more than 80% year - on - year. Toyota and BMW ranked second and third respectively.

Driven by the strong demand for electric vehicles, the Thai automotive market bucked the trend and rose in 2025. The annual sales volume reached 621,000, a year - on - year increase of 8.5%, the highest in two years. The sales volume of electric vehicles was 277,000, accounting for 45% of the total sales. Pure - electric vehicles performed outstandingly, with more than 147,000 cumulative registrations, a year - on - year increase of 52%. The number of pure - electric passenger vehicle registrations increased by 74.7%, becoming the absolute main force in the market.

The ranking of electric vehicle brands in Malaysia has been reshuffled. The local brand Proton, with a total of 3,276 registrations of eMAS 5 and eMAS 7, surpassed BYD to become the best - selling electric vehicle brand of the month. ZEEKR, iCar, and Tesla ranked third to fifth respectively. This change shows that local brands also have the potential to explode in the field of electrification.

Automobile Companies' Layout: Simultaneous Progress in Manufacturing, Products, and Channels

Facing the new policy environment and market pattern, Chinese automobile companies are accelerating the localization layout of the entire value chain, including manufacturing, product launch, channel construction, and service ecosystem.

BYD continues to make efforts in multiple markets. After remaining the best - selling brand in Singapore, BYD announced that it will launch the Seal 6 DM - i sedan and its station - wagon version, the Denza B5 SUV, and the Denza Z9 GT coupe, targeting family users and the ride - hailing market. In the Philippines, relying on the hot sales of models such as the Seagull and the Sea Lion 6 DM - i, BYD's annual sales reached 26,122, a year - on - year increase of 446%. The dealer network has expanded from 25 to 79. In Indonesia, BYD plans to build a factory with an annual production capacity of 150,000 vehicles in the first quarter, with an investment of 11.2 trillion Indonesian rupiah.

Chinese brands are collectively making efforts in local manufacturing in Indonesia. Brands such as BYD, Changan, iCar, Geely, XPeng, and JAECOO have started local assembly through PT Handal Indonesia Motor, fulfilling their commitment to root in the market.

GAC is promoting the integration of its sub - brands in the Philippines. GAC International Philippines is promoting the "One GAC" strategy, integrating sub - brands such as GAC Motor, Aion, and Hyper, unifying the brand image, optimizing the sales and service network, and planning to launch about 6 to 8 new models.

The layout of services and infrastructure is accelerating simultaneously. OMODA & JAECOO announced that when its Thai assembly plant is put into operation at the end of February, it will simultaneously establish a battery maintenance center to solve the pain points of high insurance costs and difficult repairs for electric vehicles. Jetour has announced its expansion blueprint in Malaysia, planning to expand the national sales and service network from 31 to 50 and set up a new headquarters with a regional technical training center. Hongqi has joined hands with the local agent Eurokars Group to enter the Singapore market, focusing on pure - electric and hybrid models.

The electrification of the major Southeast Asian markets has shifted from policy - driven to market - driven, and the dimension of competition is rapidly upgrading. For Chinese brands aiming at the Southeast Asian market, the market share obtained in the early stage by relying on product cost - effectiveness and the first - mover advantage in electrification needs to be consolidated and expanded through in - depth localization of the entire industrial chain. From factory construction and assembly, localization of the supply chain, to after - sales service networks and user ecosystem operation, only brands that truly "take root" can go further in the hot land of Southeast Asia.

This article is from the WeChat official account "Automotive Market Insights", author: Zheng Li. Republished by 36Kr with authorization.