Asean Vehicle Market in 2026 sustains momentum. Q1 sales grew by 7.4%, with Thailand outpacing Indonesia with 17.4% growth while Vietnam reported again the fastest expansion. The two countries competed tightly for EV share as the segment surged by 67%.
Economic Environment
ASEAN’s growth is projected to slow to 4.2% in 2026, down from 5.0% in 2025, with notable country-level declines including Vietnam easing to 6.3% (from >8%), Thailand to 1.3% (from 2.4%), Indonesia to 4.7% (from 5.1%), and Malaysia to 4.4% (from 5.2%). Smaller economies will also weaken, with Cambodia at 3.9% (from 4.8%), Laos at 3.5% (from 4.5%) while Myanmar is expected to recover modestly to 2% growth after a contraction. The slowdown is largely driven by external shocks, particularly the disruption of Middle Eastern oil and gas supplies, which is pushing up energy prices and dampening regional demand.
A sustained 50% increase in fuel prices could reduce household incomes by 3–4%, while also raising risks to food security. At the same time, U.S. tariffs are contributing to heightened policy uncertainty, weakening investment and shifting labor markets toward more informal and short-term employment. Export-dependent economies are especially vulnerable, as trade disruptions combine with weaker global demand and China’s deceleration. Despite these headwinds, Southeast Asia continues to benefit from rising AI-related exports and investment, particularly in countries like Vietnam, Malaysia, and Thailand.
Automotive Industry Trend and Outlook
In 2026, the ASEAN vehicle market is undergoing an expansion phase, although fragmented. In particular, certain countries such as Thailand and Indonesia are scaling up production and are becoming major hubs while electrification proceeds unevenly, with no uniform trend defining the region’s EV trend.
In particular, Q1 sales amounted to 847,923 units, growing by 7.4% in year-on-year volume.
Malaysia became the leader, growing by 8.8% and securing a share of 25.3%. Thailand -up 1 spot- followed in 2nd with a 22.8% share (+17.4%). Indonesia dropped 1 spot in 3rd losing 6%, with a 21.4% share. The Vietnam -up 1 spot- followed in 4th with a share of 15.4% while growing 35.6%. Philippines -down 1 spot- closed the top 5 and reported losses of 6.8% with a 13.2% share.
EV Market Trend and Outlook
EV adoption accelerates fast in 2026, although gaps remains between countries’ performances. Q1 sales grew by 67% to a 18% share, with incentives such as Malaysia’s EV tax breaks artificially shaping demand cycles. Still, Chinese and local key actors such as Vinfast are expected to keep driving sector’s expansion in the future.
Vietnam was still the leader, with a 35.6% share and growing by 61.9%, though Thailand followed closely in 2nd with 34.4% of the market and impressive 101.7% surge. Indonesia boomed 21% with a 14.6% share.
Medium-Term Market Trend
The ASEAN vehicle market is the world’s fifth-largest sub-regional automotive market, covering 10 countries but largely driven by its core economies: Indonesia, Thailand, Malaysia, the Philippines, and Vietnam. Over the past decade, total vehicle sales rose from around 2.5 million units in 2010 to a peak of 3.5 million in 2013, before stabilizing at roughly 3.0 million units annually through 2019. The COVID-19 pandemic caused a sharp contraction in 2020, with registrations falling by 24.4% to approximately 2.5 million units. The market then rebounded strongly, achieving double-digit growth in 2021 and 2022 and returning to above 3.3 million units. More recently, volumes have plateaued with slight fluctuations, reaching 3.37 million units in 2023 (+0.6%), declining to 3.26 million in 2024 (−3.4%), and easing marginally to 3.25 million in 2025 (−0.2%).
Within this overall stability, electrification has emerged as a key growth driver. EV adoption, initially modest, accelerated significantly from 2023 onward, with sales rising to 135,527 units in 2023 (+212.9%), increasing further to 173,298 in 2024 (+27.9%), and surging to 474,680 units in 2025 (+173.9%). This rapid expansion highlights a structural shift in the region’s automotive landscape, even as total vehicle volumes show signs of leveling off.
Tables with sales figures
In the tables below we report sales for the top 7 countries.
