The Woes of the Second Largest Auto Market in SEA: Electric Vehicle Sales Across the Market Don’t Match Up to VinFast’s Solo Performance in Vietnam

According to electric vehicle registration data from Autolife Thailand, the total number of pure electric vehicles (100% EVs) registered in Thailand in April was 6,278 units, a decrease of 19.7% from the previous month but still an increase of 53.6% from the same period last year. This brings the total number of EVs sold in the first four months of 2025 in the country to 31,647 units.

Looking at the EV rankings in Thailand for April 2025, it’s evident that Chinese brands dominate, with BYD taking the lead. The BYD Sealion 7 tops the list with 831 units sold, followed by the MG4 Electric (619 units) and the BYD Dolphin (616 units). Models from GWM, GAC, Zeekr, Deepal, Neta, and Omoda also made the list, but their overall sales remain relatively small.

In comparison, VinFast in Vietnam sold 9,588 electric vehicles in April alone, with a total sales volume of 44,691 units since the beginning of the year, which is about 13,000 units more than the entire Thai market. Meanwhile, Indonesia sold approximately 23,900 EVs in the first four months.

According to Reuters, household debt in Thailand reached nearly $500 billion in 2024, equivalent to more than 90% of its gross domestic product, one of the highest ratios in Asia. Current car owners are struggling to repay their debts, leading banks to tighten auto loan applications, and the gloomy economy is also dampening new car sales.

In 2024, out of the top 10 best-selling brands in the country, seven were from China.

A subsidy program of up to 150,000 baht ($4,400) has helped Thailand become the largest EV market in the region, with 70,000 new EVs registered last year.

However, analysts caution that this may not be a positive sign. They warn that this surge in production could exacerbate price competition as many Chinese brands continuously cut prices to attract customers.

Regarding Vietnam, Nikkei Asia highlights that the country’s automotive market is a bright spot in Southeast Asia, with an impressive 24% growth in the first quarter of 2025. This growth outperforms larger automotive markets in the region, thanks to favorable domestic economic conditions. The growth of the local brand VinFast reflects a clear trend towards greener choices among consumers.

Recently, VinFast has been introducing new models to expand its market reach and cater to diverse needs, such as the EC Van and the four VinFast Green models dedicated to ride-hailing services. Additionally, VinFast launched the campaign “Mãnh Liệt Tinh Thần Việt Nam – Vì Tương Lai Xanh” (Viet Nam’s Mighty Spirit – For a Green Future), offering a 4% discount to all customers purchasing electric cars and motorbikes. This initiative aims to make electric vehicles more accessible to the general public and emphasizes that “all Vietnamese people are VinFast’s close partners.”

The Vietnamese government’s supportive policies, including tax incentives, free charging, and well-developed charging infrastructure, along with VinFast’s long-term warranty packages, have contributed to the brand’s steady sales growth over time.