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 dipped 5.4% to 3.28 millions units in 2024, with Thailand (-25%) and Indonesia (-13%) experiencing the most significant declines. However, Malaysia sales rose 2%, supported by a strong economy and backlog of orders. A c.2% growth in 2025 is projected for the region, though Indonesia and Thailand still face downside risks.
EV adoption rising
ASEAN-6 EV market share surged from 9% in 2023 to 13% in 2024. Thailand and Indonesia are leading, targeting EV manufacturing dominance by 2030. Malaysia aims for EVs to make up 20% of new car sales by 2030 and 80% by 2050.
Chinese automakers expand
Chinese automakers are aggressively challenging Japanese dominance in ASEAN markets. In Malaysia, Chery captured a 2.4% market share in 2024, while BYD replaced Nissan in the top 10 largest Original Equipment Manufacturers (OEMs) in Malaysia.
Stronger regional trade
The ASEAN Free Trade Area (AFTA) is enhancing regional automative trade and encouraging automakers to optimise production networks across member countries.
Three strategic priorities
ASEAN automative players should pursue three strategic thrusts in today's dynamic market: operational excellence, business model reinvention and strategic alliances.
