Chinese-branded vehicles have been making significant strides in South-east Asia’s automotive markets, with sales showing a remarkable increase of over 58% in the first quarter of 2025 compared to the same period last year. This growth is attributed to Chinese automakers’ aggressive expansion efforts beyond their home market, as well as the region’s favorable incentives for the production of battery-powered and hybrid-electric vehicles.
In the four main markets of Indonesia, Malaysia, Thailand, and the Philippines, Chinese brands now account for over 10% of total vehicle sales, a significant jump from just over 6% in the previous year. With around two dozen Chinese brands operating in the region, competition is stiff as governments vie for investments in the green automotive sector to meet their carbon emission reduction goals.
Thailand leads the pack as the largest market for Chinese-branded vehicles, with sales nearing 27,000 units in the first quarter of 2025. BYD and its Denza brand have been particularly successful in Thailand, followed closely by SAIC Motor and GAC-Aion. Indonesia has also seen a substantial increase in Chinese vehicle sales, with BYD and Wuling leading the charge.
Malaysia and the Philippines have also experienced growth in Chinese vehicle sales, albeit at a slightly slower pace. Chery emerges as a prominent player in Malaysia, while SAIC’s MG brand gains traction in the Philippines. Overall, BYD, Chery, and SAIC Motor are the top three automotive groups dominating the Chinese vehicle market in South-east Asia.
BYD’s sales have more than doubled in the region, driven by its entry into the Indonesian market and upcoming assembly plant. Chery follows closely with an 80% increase in sales, with Malaysia being its primary market. SAIC Motor, despite a slight decline in sales, remains a key player with a strong presence in Indonesia and Thailand.
The future looks promising for Chinese-branded vehicles in South-east Asia, as the region continues to embrace electric and hybrid vehicles. With Chinese manufacturers leading the charge, the automotive landscape in these markets is set to undergo a significant transformation. As Chinese automakers expand their presence and product offerings, the competition with established Japanese brands is expected to intensify, ultimately benefiting consumers with a wider range of choices and innovative technologies.
