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JAKARTA – Southeast Asia is witnessing a dramatic surge in electric vehicle (EV) adoption, with Indonesia and Thailand emerging as the region’s frontrunners. Data from the International Energy Agency’s Global EV Outlook 2026 highlights how both countries are reshaping the automotive landscape, positioning ASEAN as a critical hub in the global transition to cleaner mobility.
Indonesia’s Rapid Growth
Indonesia recorded a threefold increase in EV sales in 2024, making it one of the fastest-growing markets in the region.
This surge reflects strong consumer interest, rising fuel costs, and government incentives.
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However, starting in 2026, Indonesia will enforce local assembly requirements (TKDN) for EVs, a policy aimed at strengthening domestic industry while potentially slowing imports.
Industry analysts note that Indonesia’s EV penetration is now comparable to mid-tier global markets such as Spain and Canada, underscoring its rapid progress in just a few years.
Thailand’s Market Leadership
Thailand remains ASEAN’s largest EV market, despite a 10% decline in unit sales last year. Conventional car sales fell even more sharply down 26% which pushed EV market share to 13% in 2024, up from 11% previously.
This shift highlights Thailand’s resilience in EV adoption, supported by government subsidies and a robust charging infrastructure.
The country continues to attract investment from Chinese automakers, who view Thailand as a strategic production base for regional exports.
Vietnam’s Rising Momentum
Vietnam nearly doubled its EV sales in 2024, with adoption levels similar to Spain and Canada.
Local manufacturers, particularly VinFast, are playing a pivotal role in driving consumer interest. Vietnam’s trajectory suggests it could soon rival Indonesia and Thailand in market influence.
Regional Dynamics
Chinese automakers companies from China are aggressively expanding across ASEAN, with production capacity expected to triple by 2026, reaching 1.2 million vehicles annually.
Government Iincentives tax breaks, import duty exemptions, and subsidies remain key drivers of adoption.
Consumer trends rising fuel prices, partly due to Middle East tensions, are accelerating the shift toward EVs.
By 2026, ASEAN is expected to become a critical hub for EV production and sales, with Indonesia and Thailand anchoring growth.
If current trends continue, EVs could account for nearly 30% of new car sales globally, with Southeast Asia playing a pivotal role in that transformation.
