Tokyo (VNA) - The development of electric vehicles(EV) is gaining momentum in Southeast Asian nations, as such vehicles requirefewer parts and barriers to market entry are lower compared to engine-poweredvehicles, according to The Yomiuri Shimbun.

In its article on the July 8 issue, the Japanese newspaper analysed the developmenttrend of automotive industry in Southeast Asia, which is focusing on electricvehicles.

It said in Vietnam, Thailand and other Southeast Asiancountries, local companies have entered the automobile market in succession,adding that they are attempting to take on the challenge of competing withJapanese carmakers, who dominate the regional market, by promoting theirdomestic brands.

The governments of these countries are also heightening effortsto support the development of their own auto industries, with electric vehiclesas the key focus.

Vietnamese conglomerate Vingroup completed an automobile factoryin June to produce Vietnam’s first auto brand, it said.

In September 2017, Vingroup — which is known for itswide-ranging businesses including real estate, retail, and information andcommunications technology — announced it intended to enter the automobileindustry. In less than two years, Vingroup created new cars by adoptingtechnologies of companies such as General Motors and BMW through businesscooperation.

The company said it has already received more than 10,000 salesorders.

In Thailand, electricity generating company Energy Absolute PCLunveiled in March a minivan made in Thailand, from design and developmentthrough to parts procurement. The company, which has yet to start selling theminivan, said the car is part of a national EV concept.

In the Philippines, local companies are turning publictransportation methods such as tricycles and jeepneys into EVs.
Meanwhile, in Malaysia, which already has two national carmanufacturers, the government is promoting a new national car concept for theEV age.

According to the article, new-car sales in ASEAN, excluding Cambodia and Laos,increased 6.6 percent from the previous year to a record 3.56 million units in2018. The figure has already reached to nearly 70 percent of the number in theJapanese market, which has sales of about 5.2 million units.

The ASEAN number is expected to exceed 4 million units by theend of 2020.

Japanese carmakers currently have an overwhelming 80 percentshare of the Southeast Asian market. Southeast Asian domestic brand cars willlikely intensify their competition with Japanese automakers over the growingmarket, the article reported.-VNA