Original Equipment Manufacturers (OEMs) are adjusting their strategies to accommodate growing markets and the increasing preference for electric vehicles within Southeast Asia.

The automotive industry in the ASEAN region is gearing up for a significant transformation, with a focus on future-proofing networks and investing in infrastructure that can adapt to a rapidly changing landscape. This shift is particularly evident in the fast-growing electric vehicle (EV) segment, where Chinese carmakers are making notable gains.

The "Automotive Logistics & Supply Chain ASEAN" event, scheduled for October 28, 2022, in Singapore, aims to explore these changes and provide expert insights from various industry leaders. Participating companies include VW Group Malaysia, Denso China, Stellantis India and Asia Pacific, and more. Registration for this event is still open and can be secured here.

The ASEAN market is witnessing a surge in EV adoption, with Thailand, Indonesia, and Malaysia leading the charge. EV penetration across ASEAN-6 grew from 9% in 2023 to 13% in 2024, and this trend is expected to continue. In fact, Malaysia aims to have 20% of its fleet composed of EVs by 2030, rising to 80% by 2050.

Thailand and Indonesia are emerging as regional EV manufacturing hubs, with OEMs, including Chinese brands, localising manufacturing in these countries. This localisation strategy is aimed at meeting the specific needs of the EV market and improving efficiency in production and distribution.

However, this shift towards EVs is putting pressure on regional logistics infrastructure. Logistics providers are under pressure to accelerate digital capabilities, including track-and-trace, real-time visibility, and emissions accounting. They are also exploring more integrated digital systems to manage supply variability and improve cross-border transparency.

The market recovery forecast for 2025 is modest and uneven. While light vehicle sales across the ASEAN-6 declined by 5.4% in 2024, with Thailand and Indonesia experiencing the largest drops, markets like Vietnam, Malaysia, and the Philippines saw an increase in vehicle sales.

The region's supply chain resilience will depend on flexible network design, deeper collaboration between OEMs and logistics partners, and the ability to integrate new entrants, particularly Chinese EV brands, into existing logistics ecosystems. Governments and private sector stakeholders are also investing in EV-ready logistics infrastructure, such as port electrification and dedicated zones for battery handling and recycling.

The ASEAN region's role as a competitive production base and emerging EV export hub will only grow. As the industry navigates this period of transformation, events like the "Automotive Logistics & Supply Chain ASEAN" provide a valuable platform for industry leaders to share insights and strategies for success in this new era.

Original Equipment Manufacturers (OEMs) are adjusting their strategies to accommodate growing markets and the increasing preference for electric vehicles within Southeast Asia.