Markets

Chinese Cars in Southeast Asia

Southeast Asia is China’s right-hand-drive EV workshop: Thailand and Indonesia host a cluster of Chinese plants that serve ASEAN and increasingly export onward — including to Europe..

Southeast Asia is China’s right-hand-drive EV workshop: Thailand and Indonesia host a cluster of Chinese plants that serve ASEAN and increasingly export onward — including to Europe.

Thailand: the EV assembly hub

Southeast Asia is China's right-hand-drive EV workshop, and Thailand — the "Detroit of Southeast Asia" — is its centre. Chinese-made cars accounted for roughly 85% of Thailand's EV sales in 2024, and BYD sold about 24,000 units in H1 2025, roughly four times its nearest rival. BYD's Rayong plant (around 150,000 units a year) opened in 2024, GWM upgraded a former GM plant in Rayong, and MG/SAIC also assembles locally. Under the EV3.5 policy running to 2027, subsidies were trimmed and tied to local assembly, imported EVs lost benefits and face higher excise, and Chinese makers began raising 2026 prices as the incentives tapered.

Indonesia and Malaysia

Indonesia is the other manufacturing pillar: BYD went from nothing to a top-four automaker and commands close to half the country's EV market, with a roughly $1 billion plant in Subang, West Java. From January 2026, incentives apply only to locally produced EVs meeting a 40% local-content threshold that rises over the decade. Malaysia became the region's largest overall market in 2025 at over 820,000 vehicles, with 21 Chinese brands and 58 models on sale; Chery was the best-selling Chinese brand in H1 2025 (led by the Jaecoo J7) and BYD led the EV segment. BYD is building a CKD facility in Tanjung Malim (operational H2 2026) and Chery is investing in a Selangor industrial park, while Geely backs the national brand Proton.

Vietnam and the wider region

Vietnam is the exception: domestic champion VinFast dominates with around 175,000 units in 2025, and Chinese brands remain small there against a strong home player — though one Chinese automaker has committed an $800 million factory to challenge it. Regionally, Chinese-branded sales across the four main markets rose about 58% year on year in Q1 2025. The Philippines and Singapore see lighter penetration, with GAC, MG, Chery and BYD present. The strategic prize is that ASEAN plants increasingly export onward — including to Europe.

Figures span 2024–2025 by market as noted (sources: local industry data, company releases).

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