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Southeast Asia is emerging as a global hotspot for electric vehicle adoption. (Photo: iStock)
Southeast Asia is rapidly emerging as a new global hotspot for electric vehicle (EV) adoption. A recent analysis by energy think tank Ember finds that Thailand's EVs accounted for 20% of new car sales in 2025, and in the first ten months of the year, the country sold more EVs than Denmark, one of Europe’s leading EV markets. In Indonesia, EVs made up 15% of new car sales, surpassing the U.S. for the first time.
Policy incentives anchor production and accelerate uptake
Across the region, governments have paired consumer incentives with industrial policy aimed at building local manufacturing capacity. Ember further notes that the rapid expansion of the EV market in ASEAN is being driven by three key factors: supportive industrial policies, the emergence of domestic manufacturers, and a surge of competitively priced Chinese imports.
