Electric vehicle (EV) sales surpassed 25% of global new car registrations in 2025. According to energy think tank Ember, this growth is largely supported by emerging economies, particularly in Southeast Asia, where momentum now exceeds that of several long-established EV markets.
Singapore and Viet Nam overtake European markets
The Association of Southeast Asian Nations (ASEAN) region is recording some of the fastest growth worldwide. Singapore and Viet Nam each reach a 40% EV market share in new car sales, surpassing levels seen in the United Kingdom and the European Union. Thailand has reached 21%, and Indonesia, at 15%, has overtaken the United States for the first time.
In Viet Nam, domestic manufacturer VinFast dominates the market, with its VF 3 model becoming the country’s best-selling car. In Indonesia, the surge is supported by government policies promoting local production, including tariff exemptions for manufacturers establishing industrial operations domestically.
A market shaped by Chinese exports
Regional growth is partly driven by the influx of low-cost EVs from China. In 2025, Indonesia recorded the second-largest increase in Chinese EV imports globally. Since mid-2023, the majority of Chinese EV exports have been directed to non-Organisation for Economic Co-operation and Development (OECD) markets, including Brazil, Mexico, the United Arab Emirates and Indonesia.
Governments are reinforcing their industrial strategies. Viet Nam has introduced low-emission zones and strengthened incentives for clean transport, while Indonesia is offering targeted tax incentives to attract investment in the EV supply chain.
A rapid transformation of the global automotive landscape
Southeast Asia is emerging as a strategic zone in the reorganisation of the global automotive market. In 2021, Viet Nam reported less than 0.05% EV share in new car sales. The current progress reflects structural changes in public and industrial policy frameworks.
Sector analysts believe the continuation of this momentum will depend on the expansion of charging infrastructure and the consistency of government measures. At the global level, emerging markets are reshaping the industry’s trajectory, influencing investments, logistics and manufacturing across new growth centres.
Impact on fossil fuel consumption
The effects on energy demand are already visible. Electric vehicles, which are three times more efficient than internal combustion engine vehicles, are reducing fuel consumption even in countries where electricity generation remains heavily reliant on fossil fuels.
In Brazil, where electricity is mostly renewable, EVs reduce demand for oil products by nearly 90%. In Indonesia, the reduction is close to 50%. This shift highlights the repositioning of emerging markets in both the energy and mobility sectors.
