Outlook on ASEAN New Energy Vehicle Market: Trends, Opportunities, Challenges

Charnsak Laicharoenchokchai, Product Strategy Director, Great Wall Motor (Thailand), delivered a presentation on the topic “Insights into the NEVs Market in Southeast Asia,” highlighting the movements in the new energy vehicle industry by reflecting on both past and future developments.

His in-depth analysis covered industry trends, opportunities, challenges, and consumer behaviour in Thailand and across the ASEAN region. He also pointed out business growth opportunities for Great Wall Motor, emphasizing the strategy of creating unique consumer experiences and differentiation to drive the brand's success and position Thailand as a leader in the new energy vehicle industry in ASEAN.

The 2nd International NEV Summit 2024 was held on 3 September 2024 at the Conrad Ballroom, Conrad Hotel, Bangkok.

The 2nd International NEV Summit 2024 is an international conference focused on the development of the new energy vehicle market for the future, including related technologies and innovations across Southeast Asia.

The event brought together automotive industry experts, senior executives, and researchers to discuss market development trends, strategize for the NEV industry, and explore business opportunities within the new energy vehicle sector.

Charnsak analyzed the new energy vehicle market in both Thailand and the ASEAN region and stated, " In 2023, the overall automotive industry in ASEAN saw sales of 3.4 million units, with over 300,000 of these new energy vehicles (NEV), representing 8% of the total automotive market."

Of this 8%, hybrid electric vehicles (HEV) accounted for 4%, plug-in hybrid electric vehicles (PHEV) for 1%, and battery electric vehicles (BEV) for 3%. Thailand led the ASEAN market with the highest NEV sales at around 64%, followed by Indonesia at 19%, Malaysia at 8%, Vietnam at 6%, and The Philippines at 3%.

The most popular NEVs in ASEAN are SUVs and passenger cars. Great Wall Motor projects that by 2025, NEV sales in ASEAN will double from 300,000 to 600,000 units, increasing NEV’s market share from 8% to 18% of the total automotive market.

This presents a significant opportunity for brands to accelerate their strategies and capitalize on this growth in a region with a population of 640 million. In the next six years, this population is expected to reach 721 million, positioning ASEAN as a region with immense economic potential, a growing middle class, and a young, dynamic workforce.

When considering the factors driving NEV growth in each ASEAN country, government policies play a key role in promoting the production and adoption of NEV.

In Thailand, the "30@30" policy supports electric vehicle manufacturers with investment incentives and tax benefits. Malaysia has set targets for NEV to account for 31%, 40%, and 70% of the market by 2026, 2035, and 2050, respectively. Indonesia has implemented the "INDONESIA AUTOMOTIVE 4.0" strategy, aiming for NEV to make up 20% of the market by 2026, along with offering incentives to battery manufacturers to use the country’s abundant nickel resources.

Additionally, Vietnam has set an ambitious goal for all vehicles on the road to be green energy vehicles by 2050, while The Philippines has introduced a policy to reduce NEV import taxes to 0% until 2028 to encourage the adoption of new energy vehicles in the country.

However, the NEV market in ASEAN still faces several challenges. These include the consistency of government policies, trade barriers in both tariff and non-tariff forms, the readiness of local component and spare part manufacturers, as well as consumer concerns regarding the cost of spare parts, particularly batteries, insurance premiums for NEV, the availability of charging stations, uncertainty about product quality, resale value, after-sales services, the expertise of technicians and the impact of price wars. These factors are contributing to the slow growth of the NEV market in the ASEAN region.

Great Wall Motor is actively advancing its business in the ASEAN region with Thailand as its central strategic hub. In Thailand, Great Wall Motor is ready and accelerating its efforts by implementing strategies that set it apart, presenting over 10 new energy vehicle models that cover a wide range of engine types, including hybrids, plug-in hybrids, and 100% electric vehicles.

Notably, the HAVAL and ORA vehicle lines have gained continuous popularity and trust, aligning with the growing demand for new energy vehicles, especially in the SUV and passenger car segments. The company emphasizes advanced technology, smart innovations for superior safety, unique and future-oriented design, and comprehensive nationwide after-sales service. Furthermore, Great Wall Motor is committed to enhancing Thailand's new energy vehicle ecosystem, highlighted by the establishment of its first smart factory in ASEAN in Rayong in 2021.

The company is also encouraging investment in Thailand from industry partners, specifically battery manufacturers such as SVOLT, HYCET, NOBO, MIND, and Exquisite. This reflects Great Wall Motor's dedication to making Thailand a comprehensive hub for new energy vehicle production, from start to finish, aiming to become a regional leader in this field.

In addition to its high-quality products and services, Great Wall Motor introduced a new business model under the One Price Policy, which ensures transparency and consistency in pricing across the country. This approach alleviates consumer concerns with a uniform price nationwide.

The company also employs Partner Models to foster collaboration and mutual support, integrates online-to-offline commerce for more convenient and faster access to products and services, and offers Smart Service focused on efficiency and meeting customer needs in the digital age. Furthermore, Great Wall Motor embraces a User-Centric strategy to ensure that the experience of driving new energy vehicles is future-ready.

This commitment ensures that Great Wall Motor’s business continues to grow steadily, robustly, and sustainably, standing alongside Thailand and driving the country’s potential to become a leader in the new energy vehicle industry in Southeast Asia, under the vision "In Thailand, For Thailand."