The electric vehicle (EV) market in Southeast Asia is undergoing rapid expansion, with Ernst & Young Global Limited forecasting that annual EV sales in the ASEAN six countries could reach 8.5 million units by 2035. The projected sales revenue is estimated to range between 80 to 100 billion US dollars. Notably, Thailand is expected to be the second-largest contributor to market growth, trailing only behind Indonesia.
According to a research report by EY-Parthenon, the EV market in Southeast Asia currently accounts for only 2% of the global market share. However, it is anticipated that Indonesia, Malaysia, Thailand, Vietnam, the Philippines, and Singapore will experience a compound annual growth rate (CAGR) ranging between 16% and 39% from 2021 to 2035. The growth in sales is expected to be primarily driven by three major categories: personal vehicles, commercial vehicles, and two- or three-wheeled vehicles.
Ernst & Young projects that by 2035, EV sales in Thailand could reach 2.5 million units, ranking second only to Indonesia and comprising approximately 30% of the total among the ASEAN six countries. The estimated total sales revenue is anticipated to range between 35 to 42 billion US dollars.
As awareness and acceptance of EVs increase in the Southeast Asian market, coupled with the continuous expansion of charging stations and research and development centers, and governments enhancing infrastructure readiness through policies and incentives, it is expected to further boost consumer purchasing power. Ernst & Young analysis suggests that among the ASEAN six countries, Thailand ranks second in overall supply chain readiness, trailing only behind Singapore.
Electric bicycles, scooters, and electric motorcycles are relatively more affordable, contributing to the fastest growth in the electric vehicle market among the ASEAN six countries. It is projected that by 2035, the usage rate of two-wheeled electric vehicles will reach 50%, with approximately 4.5 million units, generating a market value of 26 to 30 billion US dollars.