Green rides grow on Southeast Asian roads

Editor's note: The article is written by Birat Anupam, a Kathmandu-based Nepali journalist writing mostly on tourism, diplomacy, and the environment. The article reflects the author's opinions and not necessarily the views of CGTN.

In a famous book titled "The ASEAN Miracle," co-authored by Kishor Mahbubani and Jeffery Sng, Southeast Asia's core character comes true. Authors write, "ASEAN, the only truly multi-civilizational regional organization in the world, can serve as an alternative beacon of hope." Published in many of the major Southeast Asian languages like Bahasa Indonesia, Bahasa Melayu, Burmese, Khmer, Lao, Tagalog, Thai, Vietnamese, among others, this book's message of "hope" is omnipresent in the adoption of Chinese EVs on the roads of Southeast Asian nations. For example, Thailand's EVs scene has an 80 percent Chinese share in 2023, with further growth expected in 2024. 

On January 18 in Indonesia, the largest economy in the Southeast Asia, Chinese EV giant BYD, which includes billionaire American shareholder Warren Buffett, has made promising entry with hope of becoming the market leader. In 2023 alone, BYD sold 3.02 million units of their EVs including battery EVs and plug-in hybrids. Based on 2023 data, Indonesia saw sales of 17,062 units of EVs, mostly from China, with demand expected to grow further this year. 

Singapore's story with Chinese EVs is equally fascinating. For instance, BYD is the top-selling EV brand in Singapore. Another Chinese EV brand Xpeng is expected to enter the market in the second half of this year. Partnered with the German carmaker brand Volkswagen, Xpeng's Singapore entry means a lot to this competitive global EV brand.

In Malaysia, Xpeng is entering the market with its official local distributor Bursa Malaysia, rolling out its EVs in the second half of this year. In 2023 alone, Malaysia is reported to have sold more than 10,000 units of EVs. Xpeng's entry will increase the sales and consumer choice simultaneously.

Beyond sales and distribution, Vietnam represents the bigger picture of Chinese EV companies. On April 4 this year, Vietnam's trade minister confirmed that China's Chery's Omoda & Jaecoo is establishing an EV manufacturing plant in partnership with local company Geleximco. The plant will be set up in the Thi Binh Province.

Even in the Philippines, where some diplomatic and military friction with China is present, calls for Chinese investment in EVs is on the rise. Recently while talking to China Daily, Chairman of Electric Vehicle Association of the Philippines, Rommel Juan, said, "Chinese investments are critical for the development of the EV industry in the Philippines."

Stories of other Southeast Asian countries also echo the similar sentiments of these countries. As the third largest economy of Asia and the fifth largest one in the world, the ASEAN region matters significantly for Chinese EVs. These nations don't have issues like America's concern of "overcapacity". Southeast Asian countries, like almost all countries from the Global South, they do know that the issue of "overcapacity" phrase carrying geopolitical and trade war undertones, for which they don't want to get involved at the cost of their own people and economy.

In words of Mr. Eric Solheim, former chief of the UN Environment Program, American concern of "overcapacity" is "absolutely against common sense." Actually, it is the "overcapacity" of any country that enables it to be an exporter, applying to any country, including the U.S.

The year 2001 was noticed by the world as the year of China's entry into the World Trade Organization. After two decades, it is felt by China's emergence as the second largest economy in terms of GDP and largest economy in the world in terms of PPP. In the same year of 2001, China put green energy vehicle development in its five-year program. After two decades, China is an apex leader in green vehicles. EV's revolutionary development deserves no geopolitical enmity as it is not just an economic issue. For geopolitical head-offs, there are many other issues in the market.