Thailand has become a notable market for electric vehicles (EVs) in Southeast Asia, supported by consumer interest and government policies.

Thailand sold nearly as many EVs in the first half of 2025 as in the entirety of 2024, according to data from the Electric Vehicle Association of Thailand (Evat) and the International Energy Agency (IEA).

EVs are expected to account for more than 20% of Thai vehicle sales over the full year.

Bangkok has implemented policies to support EV adoption, and Thai consumers consider EVs as an alternative to reduce air pollution from road transport.

EVs are often less expensive than internal combustion engine (ICE) vehicles to purchase and operate in Thailand, with a range of models available, both imported from China and locally produced.

By the end of June 2025, the country had a substantial number of pure EVs on the road, supported by public charging stations.

Vietnam has experienced a similar increase in EV adoption, with EVs rising from 10% of new car sales in 2023 to 17% in 2024 and 42% in the first half of 2025, according to a report by Brussels-based green transport group Transport & Environment. Vietnam primarily represents a pure battery EV market.

Indonesia also recorded an increase, although gaps in charging infrastructure remain a challenge across much of Southeast Asia. Analysts note that further infrastructure expansion is necessary to maintain growth.

Brazil has seen growth in its EV market, supported by government incentives through the Mover subsidy programme, which encourages manufacturers to invest in EVs and ethanol vehicles. Increased model availability, particularly from Chinese manufacturers, along with improvements in charging infrastructure and public awareness, have contributed to this growth.

In India, EV adoption has increased in 2025. While historically lagging in the EV passenger car segment, the market has seen a rise in recent months. Domestic manufacturers such as Tata and Mahindra, alongside international companies including BYD, Hyundai, Kia and BMW, have reported growth.

Government support through purchase incentives, loan discounts, road tax exemptions, and scrappage schemes for older petrol and diesel vehicles has contributed to this increase.

Smaller markets, including Nepal and Ethiopia, have also recorded growth, with EVs representing a notable proportion of new car sales in Nepal.

Chinese EV manufacturers are diversifying into export markets while domestic competitors have also emerged. Automakers are targeting markets with relatively weak competition and early entry benefits, balancing domestic market saturation and rising stockpiles. This has led to increased competition and cost adjustments. A report by the IEA indicates that a majority of battery-electric vehicles sold in China were priced lower than their ICE equivalents, a trend observed in markets such as Indonesia, Thailand and Mexico.

Domestic entrants are complementing Chinese sales, targeting markets with simpler vehicle designs that require fewer components and do not rely on legacy ICE manufacturing infrastructure.

Vietnamese manufacturer VinFast has expanded in its home market and is pursuing growth in other emerging and established markets, including Europe and the United States. VinFast operates multiple EV production facilities, including a new plant in India with scalable capacity, and is building a smaller plant in Indonesia. The company aims to produce one million EVs annually by 2030 and is exploring other Southeast Asian markets, the Middle East, and Africa.

Other new entrants include Tito in Argentina, producing compact urban EVs, and Togg in Turkey, which has become the country's leading EV brand since commencing production in late 2022 and is targeting European expansion, beginning with Germany.

Governments are promoting domestic EV manufacturing while imposing measures to limit imports. In Southeast Asia, this strategy is partly intended to reduce reliance on fossil fuel imports, although countries with high fossil fuel content in electricity generation must consider energy balance.

The Thai government has established targets and introduced tax incentives for manufacturers and consumers. Its latest scheme, BEV 3.5, is scheduled to conclude in 2027. Thailand aims for EVs to account for 30% of domestic production by 2030, with foreign automakers receiving lower import tariffs and excise duties if production occurs locally. These policies have prompted manufacturers, including BYD, BMW, and Nissan, to establish manufacturing facilities in Thailand.

Other regional countries, such as Indonesia and Malaysia, are reviewing support schemes to prioritise domestic production and reduce imports, while exploring ways to reduce purchase incentives to allow market-driven growth.

In Brazil, the government is gradually increasing EV import tariffs to stimulate domestic production, prompting investment by companies such as BYD and Great Wall Motors. Brazil also presents opportunities for plug-in hybrid electric vehicles (PHEVs) due to ethanol and biodiesel production, allowing PHEVs to operate on alternative fuels.

Turkey is implementing similar policies to support domestic EV manufacturing while increasing import costs. India hosts local EV production facilities for manufacturers including VinFast, Hyundai, and MG Motors.

Growth is expected to continue as market penetration reaches tipping points. Bloomberg Green noted that in 2022, only a limited number of countries had achieved 5% EV penetration, but by 2024 this number had increased. Analysis by an analysis firm indicates that countries such as Vietnam, Thailand, Mexico, and India transitioned from near-zero EV sales to approximately 5% of new car sales within five years. However, growth beyond these tipping points is not guaranteed, as observed in the US and Europe, where adoption has plateaued.

The IEA projects that, under its Stated Policies Scenario (STEPS) scenario, EVs will account for nearly 25% of vehicle sales in Southeast Asia by 2030, 14% in India, and approximately 12% in Latin America.