Asean is witnessing a pick-up in electric car (EV) sales in Malaysia, Indonesia and Vietnam, whereas Thailand is a mixed bag, said Maybank Investment Bank Bhd (Maybank IB).

The investment bank said that favourable regulations, local brands and penetration of Chinese carmakers will drive sales higher.

“We prefer Asean companies that partner Chinese carmakers for manufacturing and sales, and battery value chain companies,” it said in a note on Thursday.

Maybank IB said EV sales in Asean rose from a low base in the first half of 2024 (1H2024) in most markets.

“Malaysia reported that EV car registrations rose 142% year-on-year (y-o-y) to 10,663 fully electric cars in 1H2024.

“Indonesia reported a 104% surge in sales to 11,943; and Singapore, a 218% y-o-y jump to 6,019 EVs, surpassing its 2023 numbers.

“Thailand reported a strong start in January 2024,” it added.

On a global basis, it said EV sales rose 24% to 6.7 million in 1H2024, or 21% of total car sales.

“Sales of full EVs slowed to +13.9% y-o-y, whereas plug-in hybrids accelerated by +59% y-o-y.

“Hybrid sales witnessed faster growth due to saturation and the end of EV subsidies in Europe, weaknesses in the US, lack of charging infrastructure and range anxiety. Recent tariff increases on China-made cars in the US and Europe will have a further impact,” it said.