VinFast ranks second in electric vehicle market in Southeast Asia in terms of sales

The sales of electric cars are on the rise in the Southeast Asian market, led by the Chinese brand BYD, followed by VinFast from Vietnam, competing with customers in the internal combustion engine market dominated by Japanese and South Korean companies.

Southeast Asia is still a small market for electric cars compared to other regions (Illustration: Nhật Minh).

On June 21, market research company Counterpoint said that electric car sales in the Southeast Asian market in the first quarter had more than doubled compared to the same period last year, while internal combustion engine car sales decreased by 7%.

"While leading the internal combustion engine market, South Korean and Japanese car manufacturers are struggling to transition to electric cars, and Chinese companies are filling that gap," said analyst Abhik Mukherjee of Counterpoint.

"Over 70% of electric car sales in the Southeast Asian market come from Chinese brands, with BYD leading the way," Mukherjee said. In the first quarter of last year, 75% of electric car sales in Southeast Asia came from Chinese car manufacturers.

As the second largest economy in Southeast Asia, where Chinese car manufacturers have committed to investing over $1.44 billion to establish new electric car manufacturing plants, Thailand is leading in electric car consumption in the region.

Specifically, in the first quarter, the country accounted for 55% of electric car sales in Southeast Asia, a 44% growth compared to the same period last year.

Vietnam is witnessing even more impressive growth, with pure electric car sales increasing by over 400%, capturing nearly 17% of the Southeast Asian market share, according to Counterpoint.

BYD is currently leading the electric car market with a market share of 47%, followed by VinFast from Vietnam.

BYD has achieved early success in the Southeast Asian market thanks to a distribution network established with major partners.

Meanwhile, the American electric car brand Tesla has seen its market share in Southeast Asia drop 2 percentage points to 4% in the first quarter, a stark contrast to the 37% growth in the same period last year.

Some Southeast Asian countries, such as Thailand and Indonesia, have implemented electric car stimulus programs and attracted investments - a move that Chinese car manufacturers have enthusiastically responded to amid struggles in the domestic price war.

"The Southeast Asian market is becoming an important destination in the expansion strategy of Chinese enterprises," Mukherjee said.