Southeast Asia’s electric vehicle market comes into gear

Great Wall Motors’ battery-powered ORA Good Cat is selling well in Thailand

The age of electric vehicles is gradually arriving in Southeast Asia as primarily Asian car makers are launching their fleets of battery-powered cars in the region.

In late March this year, the Bangkok International Motor Show – the main regional event for the car industry – showed a substantial concentration of electric cars, with Chinese automakers seemingly at the forefront.

Among them, China’s Great Wall Motor presented its newly launched compact electric vehicle, the ORA Good Cat, which is being sold in Thailand from 800,000 baht ($23,500) and is being positioned as a middle-class car. As of mid-April, orders for the ORA Good Cat exceeded 3,500 units.

Local production

There are also initiatives to produce electric vehicles through local capital. Thailand’s oil major PTT has unveiled an electric vehicle prototype and formed a partnership with Taiwan’s Hon Hai Precision Industry, or Foxconn, a contract manufacturer for electronic products which is also aiming to mass-produce electric vehicles in response to orders from various companies.

In Vietnam, VinFast, an automaker under the umbrella of local conglomerate Vingroup, began selling electric vehicles at the end of last year.

Some governments in Southeast Asia are also competing to attract electric vehicles and battery manufacturing. For example, Indonesia, the world’s largest producer of nickel, an element used in batteries, is trying to lure factories to the country through a possible embargo on unprocessed nickel and through lower taxes on companies that manufacture their products in the country.

Heavy investments in Indonesia

In April, China’s Contemporary Amperex Technology., known as CATL, a major automotive battery manufacturer, announced that along with Indonesian companies it would invest $6 billion to build a new factory and other projects. The company explained that the investment was “an important milestone for CATL’s global footprint expansion.” South Korea’s Hyundai Motor has also begun producing electric vehicles in Indonesia.

In February, the Thai government announced an incentive program of lower tax rates for companies that produce electric vehicles within the country. Sales subsidies are also available. The government aims to foster related industries and to stimulate demand through both the tax system and subsidies.

Japan’s automakers lagging behind

Japanese manufacturers are also trying to catch up. Toyota Motor presented its mass-produced model electric vehicle, the bZ4X, and battery-powered models of its luxury car brand Lexus at the motor show in Bangkok. In late April, Toyota signed a memorandum of understanding with the Thai government to apply for incentives.

Japanese automakers have been dominant in Southeast Asia, with market share exceeding 80 per cent in some countries. However, they have focused on hybrid and plug-in hybrid vehicles as their main electrified cars, with their production of fully electric vehicles lagging behind the Asian competition.



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[caption id="attachment_38496" align="alignleft" width="300"] Great Wall Motors' battery-powered ORA Good Cat is selling well in Thailand[/caption] The age of electric vehicles is gradually arriving in Southeast Asia as primarily Asian car makers are launching their fleets of battery-powered cars in the region. In late March this year, the Bangkok International Motor Show – the main regional event for the car industry – showed a substantial concentration of electric cars, with Chinese automakers seemingly at the forefront. Among them, China’s Great Wall Motor presented its newly launched compact electric vehicle, the ORA Good Cat, which is being sold in Thailand from...

Great Wall Motors’ battery-powered ORA Good Cat is selling well in Thailand

The age of electric vehicles is gradually arriving in Southeast Asia as primarily Asian car makers are launching their fleets of battery-powered cars in the region.

In late March this year, the Bangkok International Motor Show – the main regional event for the car industry – showed a substantial concentration of electric cars, with Chinese automakers seemingly at the forefront.

Among them, China’s Great Wall Motor presented its newly launched compact electric vehicle, the ORA Good Cat, which is being sold in Thailand from 800,000 baht ($23,500) and is being positioned as a middle-class car. As of mid-April, orders for the ORA Good Cat exceeded 3,500 units.

Local production

There are also initiatives to produce electric vehicles through local capital. Thailand’s oil major PTT has unveiled an electric vehicle prototype and formed a partnership with Taiwan’s Hon Hai Precision Industry, or Foxconn, a contract manufacturer for electronic products which is also aiming to mass-produce electric vehicles in response to orders from various companies.

In Vietnam, VinFast, an automaker under the umbrella of local conglomerate Vingroup, began selling electric vehicles at the end of last year.

Some governments in Southeast Asia are also competing to attract electric vehicles and battery manufacturing. For example, Indonesia, the world’s largest producer of nickel, an element used in batteries, is trying to lure factories to the country through a possible embargo on unprocessed nickel and through lower taxes on companies that manufacture their products in the country.

Heavy investments in Indonesia

In April, China’s Contemporary Amperex Technology., known as CATL, a major automotive battery manufacturer, announced that along with Indonesian companies it would invest $6 billion to build a new factory and other projects. The company explained that the investment was “an important milestone for CATL’s global footprint expansion.” South Korea’s Hyundai Motor has also begun producing electric vehicles in Indonesia.

In February, the Thai government announced an incentive program of lower tax rates for companies that produce electric vehicles within the country. Sales subsidies are also available. The government aims to foster related industries and to stimulate demand through both the tax system and subsidies.

Japan’s automakers lagging behind

Japanese manufacturers are also trying to catch up. Toyota Motor presented its mass-produced model electric vehicle, the bZ4X, and battery-powered models of its luxury car brand Lexus at the motor show in Bangkok. In late April, Toyota signed a memorandum of understanding with the Thai government to apply for incentives.

Japanese automakers have been dominant in Southeast Asia, with market share exceeding 80 per cent in some countries. However, they have focused on hybrid and plug-in hybrid vehicles as their main electrified cars, with their production of fully electric vehicles lagging behind the Asian competition.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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