The ASEAN-6 automotive industry is undergoing a period of transformation as economic pressures, evolving consumer preferences and advancements in electrification reshape the market. This snapshot study (status as of February 2025) looks at the six most important automotive markets in ASEAN: Indonesia, Malaysia, Thailand, Philippines, Vietnam and Singapore (ASEAN-6).
‘ASEAN's automotive market is at a turning point. The convergence of transformative megatrends—in particular Connected, Autonomous, Shared and Electric driving—is not merely prompting a fundamental rethink, but is creating new opportunities to drive both economic resilience and social progress. For automotive players, the process of reinvention begins now—a pivotal moment where visionary leaders must focus on strategic priorities that resonate with ongoing industry reconfiguration.’
Sales recovery expected
ASEAN-6 light vehicle sales fell 5.4%, with Thailand and Indonesia experiencing down of 25% and 13% due to economic challenges and tighter auto financing. Despite this, regional growth is expected to rebound slightly in 2025, though Indonesia still faces downside risks.
EV adoption rising
EV adoption rose from 9% in 2023 to 13% in 2024, driven by incentives and eco-awareness. Indonesia and Thailand are leading the push, aiming to become EV manufacturing dominance by 2030.
Chinese automakers expand
Chinese automakers are rapidly expanding in ASEAN, challenging Japanese dominance with affordable, tech-forward EVs.
Stronger regional trade
The ASEAN Free Trade Area (AFTA) is boosting cross-border automotive trade, prompting automakers to optimize production across ASEAN.
Three strategic priorities
ASEAN automotive players should pursue 3 strategic thrusts in today's dynamic market - operational excellence, business model reinvention, and strategic alliances.
