At the third China International Supply Chain Promotion Expo, many Chinese new energy vehicle (NEV) companies showcased their deep cooperation with Southeast Asian countries in the supply chain. Despite rising external uncertainties, China’s NEV companies are strengthening ties with Southeast Asia, creating new paths for mutual cooperation and growth.

The Regional Comprehensive Economic Partnership (RCEP) has boosted economic and trade benefits, making Southeast Asia an attractive destination for Chinese NEV companies. With improved supply chain connectivity, Southeast Asia has become a key location for local production, technical transfer, and industrial collaboration.

Strategic Expansion

Southeast Asia is rapidly emerging as a crucial market for Chinese NEVs. According to experts, China’s strong competitive edge in the NEV sector has led to high export growth. As the region’s economy develops, its market potential is expanding, offering new opportunities for Chinese companies.

By 2030, Southeast Asia’s middle-income group is expected to reach 472 million, presenting a huge potential market. Reports predict significant growth in the electric vehicle market in Indonesia, Malaysia, Thailand, and Singapore by 2035, with sales expected to rise from $2 billion in 2021 to $80-100 billion.

Localized Production

Many Chinese NEV companies, including BYD, Geely, Great Wall, and Chery, are actively expanding in Southeast Asia. Key developments include:

• Great Wall’s Malaysian KD factory has started producing the Haval H6.

• BYD opened a factory in Thailand, covering all production processes.

• SAIC’s 3 millionth EV was produced in Indonesia.

• Geely’s EX5 EV has completed trial production in Indonesia.

Chinese brands are leading the electric vehicle market in Indonesia and Thailand. For instance, Indonesian EV sales grew by 267% in the first half of 2025, with Chinese brands dominating.

Building a Collaborative Ecosystem

Southeast Asia is becoming a key hub for industrial clusters. Chinese NEV companies have contributed to technological innovation, supply chain integration, talent development, and efficient management in the region. This ecosystem is helping modernize the local car industry and increase global competitiveness.

For example, BYD’s plant in Thailand has introduced flexible production lines to upgrade the local industry. Similarly, Geely has helped revitalized Malaysia’s national brand Proton and is involved in developing a high-tech auto valley in Tanjung Malim, Malaysia.

As more Chinese NEVs drive through the streets of Southeast Asia, the growing collaboration between Chinese NEV companies and local partners is creating a deeper, more integrated, and mutually beneficial industry ecosystem.