Kuala Lumpur, 25 October 2025 – Electric-vehicle (EV) adoption in Southeast Asia is accelerating, yet the battle between national carmakers and Chinese newcomers raises crucial questions about the future of the region’s auto industry. While Chinese EV brands dominate, local players like Proton and Vietnam’s VinFast are fighting to stay relevant.
The Rising Tide of EVs in ASEAN
Not long ago, EVs were a novelty in the region: in 2021, no ASEAN market saw electric cars (including plug-ins) make up more than 3 % of total sales. Today, there’s been a sea-change. In 2024, approximately one-in-11 vehicles sold across ASEAN was an EV, with registrations growing nearly 50 % year-on-year. Singapore leads the way, with close to half of new cars registered in 2025 being EVs. Vietnam, Thailand and other markets are seeing double-digit EV shares.
Chinese Brands in the Lead
Chinese EV makers are well ahead in the region. Analytics firm Kpler estimates that for every 10 EVs sold in key ASEAN countries (Indonesia, Malaysia, Vietnam, Thailand, Singapore, Philippines), about seven are Chinese-brands. In Thailand, Chinese brands account for over 80 % of EV sales; the single largest player is BYD.
Chinese firms are also aggressively investing overseas, preparing for weaker domestic growth by exporting and establishing new markets. They’re competing on price, scale and brand reach, a major threat for local national carmakers.
Proton’s Revival Under Pressure
Malaysia’s national carmaker Proton has experienced a turnaround under the influence of Chinese collaborator Geely (which owns a 49.9 % stake). Once suffering from poor reputation and low market share (dropping to 11 % in 2018), Proton rebounded to over 20 % in 2020.
The latest chapter: Proton’s EV brand e.MAS, in particular, the e.MAS 7 EV, was the best-selling EV model in Malaysia for the first nine months of 2025, with 6,655 units sold (about one in every four EVs in Malaysia).
Proton is rolling out production of e.MAS 7 and the forthcoming smaller e.MAS 5 from a new factory in Tanjung Malim, Perak, capacity initially 20,000 units a year, expandable to 45,000. Pricing is expected to drop under RM100,000 for the e.MAS 7, while the e.MAS 5 is targeted at RM60,000-80,000.
Domestic buyers say brand familiarity and after-sales support give Proton an edge ,even if its platform is essentially derived from Geely’s technology. “We waited for Proton because we were worried about after-sales service… Proton is here to stay as our national carmaker,” one bank executive said.
Yet, the Threat Is Real
Despite Proton’s progress, the challenge looms large. BYD re-priced its Atto 3 in Malaysia to RM123,800 (RM44,000 lower than its 2023 launch price) to bring it closer to Proton’s e.MAS price point. BYD also plans local production in Malaysia in the second half of 2026, aiming to further cut costs.
In Indonesia, EV sales remain under-penetrated (just under 10 % of car sales in H1 2025) due to infrastructure gaps: e.g., 3,772 public chargers nationwide vs Malaysia’s 4,161, and Singapore’s 15,300 with plans to expand to 60,000 by 2030.
The Broader Stakes for ASEAN
- National industrial policy vs global competition: ASEAN governments have supported national-car champions (Malaysia’s Proton, Vietnam’s VinFast) with subsidies, local-content requirements and preferential tariffs. But these must now compete against global players with massive scale and vertical integration.
- Export orientation: Proton aims for 500,000 units by 2035, half of which from exports, to stay afloat it must not just dominate domestically, but compete internationally.
- Supply-chain and value-add risk: One threat is that local assembly becomes mere final-stage work for Chinese platforms rather than deep local content. The article warns that if local content remains low, the region’s industrial benefit will shrink.
- Technology & infrastructure: EV adoption depends on charging infrastructure, battery supply, semiconductor links and electricity cost. In countries where petrol remains cheap (Malaysia) or chargers sparse (Indonesia), the shift may be slower.
Outlook
The future of ASEAN’s national carmakers hangs in the balance. Proton’s revival is promising, but it must accelerate and out-innovate to fend off Chinese disruptors like BYD. Meanwhile, governments must ensure their automotive ecosystems deliver meaningful value-add, not just imported platforms assembled domestically.
If local brands succeed: a strong domestic industry, export growth and jobs. If not: dominance by foreign OEMs and marginalisation of national automotive ambitions.
For Asia-Pacific stakeholders, this is more than a motoring story, it’s about industrial policy, regional value chains and navigating a global-EV race with heads-up.
