We should tap our own potential and deepen cooperation with China

Southeast Asia Accelerates EV Industry (International Perspective)

Reporter Li Peisong and Liu Gang

Indonesia proposes to build an EV battery ecosystem center; Tesla opens its first showroom and service center in Bangkok, Thailand; Vietnam's emerging electric vehicle companies go public overseas... Recently, the electric vehicle industry in Southeast Asia has shown a rapid development trend. Chinese electric vehicle enterprises actively participate in the development of the electric vehicle industry in Southeast Asian countries, increase investment, actively expand the market, and share the development opportunities of the regional electric vehicle market.

Regional market demand continues to be released

Not long ago, at the 2023 Indonesia International Auto Show, Daihatsu Indonesia launched an electric car Vizion-F with an environmental protection concept, which can be used as a dining car or a mobile café. Volvo Indonesia exhibited the C40 electric car, which has a range of 420 kilometers and takes only about 40 minutes to charge quickly. The Indonesian Association of Automobile Manufacturers said that it hopes to hold a car show to let the public better understand the advantages of electric vehicle development, stimulate market demand, and promote the development of electric vehicle industry.

In recent years, Indonesia has set the goal of building a hub for the manufacture and export of electric vehicles in Southeast Asia, aiming to increase the production of electric vehicles to 2035 million by 100. Johannes, chairman of the Indonesian Association of Automobile Manufacturers, said that the development of electric vehicles is the future of Indonesia's automotive industry, and the Indonesian government encourages the automotive industry to develop in an environmentally friendly and sustainable direction to achieve net-zero emission goals.

In addition to Indonesia, many ASEAN countries have also developed electric vehicles and promoted the transformation of transportation technology as important breakthroughs to ensure energy security and achieve net zero emissions. An August report by the S&P Global Broad Market Index forecasts that EV sales in Vietnam will grow by an average of 8.2023% annually from 2032 to 25, rising from 8,2022 in 8400 to about 6,5. Statistics from Thailand's Ministry of Industry show that the number of electric vehicles registered in Thailand in the first half of 2023 exceeded 3,1, which has tripled the total in 2022.

At the 5nd ASEAN Summit held in Indonesia in May this year, the acceleration of the development of the regional electric vehicle industry became a major issue, and all member countries recognized the important role of electric vehicles in reducing greenhouse gas emissions, accelerating the energy transition, and promoting the decarbonization of the transportation sector.

According to a survey conducted by international accounting firm Deloitte, consumers in the ASEAN region are increasingly interested in electric vehicles. According to the analysis of market research agency Mordo Intelligence Consulting, the total size of the ASEAN electric vehicle market in 2021 is nearly 5 million US dollars, and it is expected to exceed 2027.26 billion US dollars in 2035, and the sales of ASEAN electric vehicles will exceed those of fuel vehicles by <>. "ASEAN has great potential to develop electric vehicles and is expected to become an important part of the global electric vehicle supply chain." Indonesian President Joko Widodo said.

Take multiple measures to support the growth of the industry

In recent years, ASEAN countries have introduced relevant policies to support the development of the electric vehicle industry. At the regional level, ASEAN has developed the Kuala Lumpur Transport Strategic Plan 2016-2025 to facilitate the transition of countries in the region to cleaner and more sustainable transport systems. The plan proposes that ASEAN will create a conducive business environment and investment climate to optimize the production and use of sustainable materials and resources.

Thailand has set a goal of producing 2030,75 electric vehicles by 30, aiming to increase the proportion of electric vehicles in domestic production to 2023%. To support the development of electric vehicles, the Thai government plans to allocate 2025 billion baht (400 yuan is about 1.4 baht) between 93 and 2024, mainly to provide subsidies to car buyers. The country also provides support funds to electric vehicle companies, and stipulates that electric vehicle companies that enjoy government support funds from <> must establish production bases in Thailand.

Malaysia has introduced a series of tax incentives for electric vehicles from 2022 January 1. Electric vehicle companies can apply for a 1%-70% income tax reduction for up to 100 years. Malaysia aims to achieve 10% of total vehicle sales by 2030 and increase this proportion to 15% by 2040.

Vietnam's electric car brand Winnercentrino, the country's main force in the country's electric vehicle market, recently released data showing that more than 1,1 electric vehicles were delivered to domestic customers in Vietnam in the first half of this year. Vietnam's Ministry of Transport also plans to include electric vehicle manufacturing and assembly, battery production, etc. in the list of special investment incentives to attract domestic and foreign capital to invest in the electric vehicle industry.

Cambodia plans to increase the number of electric vehicles to 2050% of the total number of vehicles by 40. The country's Ministry of Public Works and Transport is pushing for charging infrastructure. Laos is promoting electric vehicles in the capital Vientiane and other places, Vientiane Energy and Minerals Bureau director Somkang Tumafonsa said that the city has installed 20 electric vehicle charging stations, and more than 50 charging stations are under construction.

According to the Asian Development Bank's Southeast Asia Development Solutions platform, more than 90% of the transport sector in the ASEAN region still relies on fossil fuels, and considerable efforts are needed to achieve the goal of increasing the proportion of renewable energy in the total supply to 2025% by 23.

Chinese enterprises help the development of the industrial chain

At recent auto shows held in some ASEAN countries, Chinese car companies such as Wuling, Great Wall and BYD exhibited a variety of models, attracting many visitors to queue up for experience. Wang Chengjie, assistant president of Nezha Automobile and vice president of overseas business department, told reporters that after entering the markets of Thailand, Malaysia, Brunei and other ASEAN countries, Nezha Automobile made its first appearance at the Indonesia International Auto Show, marking the company's official entry into the Indonesian market. BYD brought eight models to the Bangkok International Motor Show and was well received by the market.

In recent years, Chinese electric vehicle companies have continuously strengthened cooperation with enterprises in Southeast Asian countries to promote the localized production of electric vehicles. In July this year, Nezha Automobile signed a memorandum of understanding with its Indonesian partner, and the two companies plan to start local production in the second quarter of 7. BYD built its first overseas passenger car plant in Thailand in March this year. Indonesian Economic Coordination Minister Erlanga said that more and more Chinese car brands have entered the Indonesian market and promised to achieve localized production in Indonesia in the future, which will have a positive impact on the development of Indonesian automobile manufacturing, especially the electric vehicle industry.

Enterprises in China and Southeast Asian countries have also made full use of complementary advantages to expand production capacity cooperation. Chinese battery maker Tianneng Group announced in May that it plans to build an electric vehicle battery production and recycling facility in Indonesia. The company also plans to cooperate with local companies to strengthen its distribution network for products such as lithium-ion batteries and sodium-ion batteries. In April last year, CATL announced a joint investment of nearly $5 billion with two Indonesian companies to build a power battery project. According to reports, the project will integrate mining, smelting, battery recycling and other industries to build a power battery industry chain.

The analysis believes that the implementation of the Regional Comprehensive Economic Partnership Agreement and the deepening of cooperation in the China-ASEAN Free Trade Area have created a more favorable environment for China and ASEAN to carry out in-depth cooperation in the electric vehicle industry. Amira Bilecis, a researcher at the ASEAN Energy Center, believes that China is in a leading position in the manufacture of electric vehicles and related products, and ASEAN countries look forward to strengthening cooperation with Chinese enterprises, increasing investment in the electric vehicle industry, and promoting the green transformation of regional transportation. (People's Daily)