Looking Back: 5 Key Automotive Trends That Shaped Southeast Asia in 2024
By Aaron Kee, CARSOME Group Chief Business Officer
23 Dec 2024 – Southeast Asia’s automotive industry experienced a transformative year in 2024, with key developments in electric vehicle (EV) adoption, the rise of Chinese automakers, and shifts in consumer preferences. As the region balanced global innovation with local strategies, these trends highlighted Southeast Asia’s growing significance in the global automotive landscape. Here is a recap of the top trends that shaped the market in 2024:
1. Southeast Asia Accelerates EV Adoption
Southeast Asia continued its steady embrace of electric vehicles in 2024, driven by government incentives, infrastructure investments, and the entry of global players. Thailand led the way with its established EV manufacturing sector, bolstered by the EV 3.5 policy, which strategically balances competitive pricing with local production requirements. This policy, which includes purchase subsidies, excise tax reductions, and import duty cuts, mandates that importers commit to local manufacturing, ensuring sustainable growth in the industry while mitigating oversupply and severe price competition.
Indonesia capitalized on its nickel reserves, positioning itself as a critical player in the global EV supply chain by attracting leading battery manufacturers. The country's ambitions aligned with the region's broader focus on leveraging natural resources to boost EV production.
Countries like Malaysia welcomed high-profile players such as Tesla, which introduced its models alongside plans to expand charging infrastructure. However, the region’s EV adoption was tempered by affordability challenges, with governments balancing foreign entrants with policies to support local automakers. For instance, floor pricing mechanisms in some markets were introduced to give domestic players time to scale EV production.
Table 1: Selected Incentives, Tax Exemptions, Manufacturing Goals, and Infrastructure Support
2. Chinese Automakers Make a Mark
2024 was a breakout year for Chinese automakers in Southeast Asia. Brands like BYD, Chery, and Wuling successfully rebranded themselves and penetrated the market with competitive pricing, modern features, and strong after-sales support. According to data from the China Association of Automobile Manufacturers (CAAM), China sold 3.316 million vehicles in November 2024, an 11.7% Y-on-Y increase with automobile exports reaching 5.345 million units, from January to November, up 21.2% from the corresponding period in the previous year.
BYD: Positioned itself as a premium yet accessible EV option, launching models such as the Atto 3 and Seal that appealed to urban, eco-conscious drivers.
Chery: Focused on SUVs, reintroducing itself with models like the Tiggo 8 Pro, praised for their design, features, and affordability.
Wuling: Captured the value-conscious segment with compact, city-friendly EVs like the Air EV, which found success in urban centers across the region.
These automakers overcame historical perceptions of quality by emphasizing innovation and value, becoming serious competitors to Japanese and Western brands in the region.
3. Affordability Remains the Driving Force
Affordability continued to dominate consumer decisions across Southeast Asia. The region’s diverse income levels meant that compact cars, mid-sized SUVs, and budget-friendly EVs led sales. Pre-owned vehicles also gained popularity as consumers sought cost-effective options amid economic uncertainties.
Additionally, countries like Malaysia and Thailand are navigating new policies that influence consumer behavior. In Malaysia, the diesel subsidy rationalization in 2024 and the upcoming petrol subsidy rationalization in 2025, along with Thailand's tighter loan approvals, have collectively steered customers toward more affordable vehicle options.
Chinese automakers capitalized on this trend, offering vehicles that combined affordability with advanced technology.
4. The Digital Transformation of Automotive Sales
Digital platforms revolutionized how vehicles were bought, sold, and financed in Southeast Asia in 2024. As smartphone penetration reached new heights, end-to-end digital solutions gained popularity. Tech analyst company Canalys reported that the Southeast Asian smartphone market grew by 15% year-on-year in Q3 2024, with shipments reaching 25 million units. These platforms offered features such as virtual showrooms, AI-driven recommendations, and real-time trade-in valuations.
The convenience of online automotive transactions resonated strongly with Southeast Asia’s younger population. Dealers and automakers increasingly invested in digital ecosystems to meet these expectations, integrating post-sale services like insurance and maintenance into their platforms.
CARSOME continues to lead on the digital innovation front with the introduction of real-time valuation in the CARSOME App which allows customers to browse, buy, sell, service, and insure vehicles and also read the latest automotive news from WapCar and iCar.
5. Sustainability Gains Traction
Southeast Asia’s commitment to sustainability became more evident in 2024. Governments promoted hybrid vehicles as transitional solutions, particularly in markets EV infrastructure remained limited. Hybrid models gained popularity in countries like Indonesia, Thailand, and Malaysia, where they were seen as practical alternatives to full EV options.
The concept of a circular economy also gained momentum, with initiatives to refurbish and recycle vehicles becoming more common. These efforts aligned with growing environmental awareness and the need to minimize the carbon footprint of automotive production and consumption.
2024, A Transformative Year for Southeast Asia
In 2024, Southeast Asia’s automotive industry demonstrated its ability to adapt to global trends while addressing local challenges. From the successful entry of global and Chinese automakers to the region’s unique approach to EV adoption and sustainability, Southeast Asia emerged as a dynamic and competitive market.
As the region moves into 2025, the lessons and achievements of the past year will continue to shape its role in the Southeast Asia automotive industry. With a balance of innovation, affordability, and sustainability, the region is driving into a future defined by opportunity and transformation.
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