ASEAN EV Market Rapidly Developing, Industry Players Optimistic About Taiwan's Semiconductor Supply Chain

(CNA) - July 3, 2024 - The electric vehicle (EV) market in the Association of Southeast Asian Nations (ASEAN) is developing rapidly, with Thailand, Indonesia, and Vietnam emerging as key regional markets. Industry representatives believe that despite Chinese brands dominating the ASEAN EV market, opportunities still exist for technology transfer and supply chain development. They also point out that Taiwan can leverage its semiconductor, component, and R&D capabilities to participate in the EV supply chain.

EV industry players from various ASEAN countries are gathering at the "Mobility Tech Asia" exhibition in Bangkok, which runs for three days starting July 1. The event serves as an important exchange platform for sustainable and intelligent transportation in Asia, focusing on innovative technologies such as AI-driven smart mobility, intelligent infrastructure, Advanced Driver-Assistance Systems (ADAS), and EV solutions.

Edmund Araga, Chairman of the ASEAN Federation of Electric Vehicle Associations (AFEVA), told CNA that Thailand, Indonesia, and Vietnam are currently the fastest-growing EV markets in ASEAN, with the Philippines also rapidly catching up.

Araga noted that while Chinese brands have taken the lead in the ASEAN EV market, this presents not only risks but also opportunities for technology transfer, allowing ASEAN to learn and develop its own industries.

Thailand is one of the fastest-growing EV markets in Southeast Asia. According to Krungsri Research, Thailand's annual new pure electric vehicle registrations are expected to remain around 125,000 units from 2026 to 2028.

Krisda Utamote, Honorary Advisor to the Electric Vehicle Association of Thailand (EVAT), stated that the rapid growth of EVs in Thailand in recent years has been largely driven by government subsidy measures, which have encouraged manufacturers to shift from imports to local assembly, making vehicle prices more competitive.

He added that Thailand aims to continue developing its supply chain for components such as batteries, electric motors, and ADAS, thereby enhancing local manufacturing capabilities.

Regarding Taiwan's role, Krisda believes that while Taiwan may find it difficult to compete with China in the overall vehicle market, semiconductors remain an indispensable part of the EV supply chain. Taiwanese company Delta Electronics has already invested in automotive component R&D and production in Thailand, indicating future potential for collaboration in semiconductors, components, and software development.

Willy Tee Ten, President of the Electric Vehicle Association of the Philippines (EVAP), admitted in an interview with CNA that the Philippines is currently one of the slower markets for EV adoption in Southeast Asia.

He explained that government subsidies remain the most crucial policy tool for promoting EV adoption. The Philippines currently offers import duty exemptions for certain EVs, with these incentives valid until 2028. The association is already communicating with the government to request an extension of these benefits for another five years.

Speaking about Taiwan, Tee Ten pointed out that the Philippines heavily relies on motorcycles for delivery and taxi services, requiring vehicles with high range and carrying capacity. "Taiwan has an advantage in two-wheel electric vehicle technology, and future cooperation in the two-wheel vehicle market with the Philippines is expected," he said.

He added that the Philippines' unique sidecar tricycles, which have long used motorcycles with added sidecars, could also represent a market opportunity if models are designed to meet local needs in the future. (Edited by Tang Sheng-yang) 1150703)