By Kate Yuan

(JW Insights) Aug 30 -- Southeast Asia has become a crucial market for China's EV exports amid heated competition at home.

China's exports of new energy vehicles (NEVs) reached 101,000 units in July 2023, with a 29.5% increase month-on-month and an 87% surge year-on-year. In January-July, the export of NEV hit 636,000 units, souring 150% from a year earlier, according to the China Association of Automobile Manufacturers (CAAM).

Chinese EVs accounted for 75% of the electric car market in Southeast Asia, with Thailand being a prime destination for Chinese automakers, said Counterpoint Research.

In 2022, China exported 79,420 NEVs to Thailand, a 96% year-on-year growth rate. Among the top five EV models in Thailand in 2022, four were Chinese brands: Great Wall Motors' ORA Good Cat, SAIC Motor's MG EP, SAIC Motor's MG ZS EV, and BYD's ATTO 3 (Yuan PLUS), showed data from China Passenger Car Association (CPCA).

Benefiting from strong sales performance in both domestic and overseas markets, BYD consistently maintained its leading position in monthly and cumulative sales.

Cui Dongshu, head of CPCA, said, “The trade between China and ASEAN countries maintains a good growth trend compared to other markets. Moreover, there is a growing demand for NEVs in Southeast Asia.

"Chinese enterprises have significantly improved their export capabilities. With the rising consumption levels and the penetration of electrification in the Southeast Asian market, there is tremendous potential for new car sales in Southeast Asia," said Cui Dongshu.

Data shows that in 2022, the growth rates of new car sales hit 30.2% in Indonesia, 26.8% Thailand, 20.6% Malaysia, 10.5% Vietnam, and 10.5% the Philippines. International consulting firm KPMG said in a report that the size of the Southeast Asian NEV market is expected to continue growing, from 38,000 units in 2020 to 1 million units in 2030.