Chinese automakers are strengthening their presence in Southeast Asia

Chinese carmakers posted strong sales growth in Southeast Asia last year, with their combined deliveries in Thailand, Indonesia, Malaysia and the Philippines rising 95 percent to more than 377,450 units from 193,510 in 2024, according to preliminary data released by local industry sources.

Overall sales in these four markets were slightly lower at 2.71 million units in 2025, meaning Chinese automakers doubled their combined share of the region’s markets last year to 14% from 7% in 2024, mainly at the expense of underperforming Japanese automakers such as Honda, Nissan and Daihatsu.

While Thailand was the third largest market in Southeast Asia last year, it was the largest market for Chinese brands with more than 140,000 sales, accounting for 23% of total vehicle sales. Indonesia was the second largest market in the region for Chinese automakers with over 128,000 sales and a 16% market share, followed by Malaysia with 59,990 units (7%) and the Philippines with 48,960 units (11%).

These market shares only include vehicles sold under Chinese brands and do not reflect partnerships between domestic brands and Chinese automakers, including Malaysia’s Proton, which produces a significant number of vehicles based on platform technologies derived from its 49.9% Chinese shareholder Zhejiang Geely Holding Group, and partnerships on a smaller scale, such as between Indonesia’s Hartono Istana Electronic (Polytron) and China’s Skyworth Automobile and also between Thailand’s Energy Absolute (EA) and EVE Energy/Sunwoda Mobility.

The strong growth seen in the region by Chinese brands last year has been driven by increased demand for battery electric vehicles (BEVs), a segment that Chinese automakers have come to dominate globally in recent years. BEV sales in the four markets surveyed rose 105% to approximately 264,000 units last year, sales in Thailand rose 80% to more than 120,000 units, followed by Indonesia with 143% growth to nearly 107,000 units, Malaysia at 30,850 units and +890% from the Philippines. (+90%). Chinese automakers accounted for roughly 90% of those sales.

Demand for BEVs in the region has been boosted by generous government incentives, such as tax rebates for consumers and investment incentives for vehicle manufacturers, which have encouraged a growing number of Chinese brands to enter these markets and localize production as they face sluggish demand and fierce competition in their home market. Although some markets in the region reduced some BEV incentives in early 2026, even for cumulative imports, most Chinese vehicle manufacturers have established strong dealer networks in the region and have already localized vehicle production.

The top three automotive groups accounted for nearly 76% of Chinese vehicle sales in the four countries surveyed last year, or about 285,880 units. These include BYD, Chery and SAIC Motor. Over the past year, manufacturers have launched a significant number of new locally manufactured models, including a significant number of low-cost entry-level models, which has helped improve affordability and boost demand.

BYD and its sub-brand Denza were by far the largest Chinese automotive group in the ASEAN region last year, with sales in the four markets rising 146% to nearly 140,000 units last year. Indonesia was its biggest market in the region, with sales up almost fourfold to 54,248 units, all of which were BEVs, followed by Thailand, with sales up 58% to 44,440 units. In the Philippines, deliveries increased sixfold to 26,120 units, following the launch of sales operations in 2024. Last year, the company strengthened its product range with the more affordable Atto 1 small BEV model.

SAIC engine was the second best-selling Chinese carmaker in the region after a 37% increase in sales to 74,230 units, which includes BEVs, hybrids and ICEs sold under its MG, Maxus and Wuling brands. The company’s biggest market in the region is Indonesia, with sales from its SAIC-GM-Wuling joint venture up 52% to 33,425 units and 2,300 more units sold under the MG/Maxus brands. In Thailand, the company sold just over 27,000 vehicles under its MG brand, with nearly 11,000 units sold in Malaysia and the Philippines combined.

Cherry was the third largest Chinese carmaker in the region, after sales of its Chery, Omoda, Jetour and Jaecoo brands combined doubled last year to 71,680 units. The company’s biggest market was Malaysia, where its sales rose 70% to 33,460 units, accounting for nearly half of its regional sales. In Indonesia, deliveries rose 153% to just over 23,000 units, while in Thailand and the Philippines sales tripled to just over 15,000 units combined.

Other key players posting strong growth in the region include Great Wall Motors (GWM), with sales up 180% to over 26,000 units, and GAC Group with a 136% increase to nearly 23,000 units.

“Chinese automakers strengthen presence in Southeast Asia” was originally created and published by Automatic onlya trademark owned by GlobalData.

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