The Current State and Future Outlook of Asia’s EV Market
These days, it’s no longer surprising to see EV charging stations not just at apartment complexes or major shopping malls, but even in the parking lot of your local grocery store. Electric vehicles have become a regular part of everyday life, with a wide range of models on the road—from global names like Tesla to homegrown brands like Hyundai and Kia. This growing visibility reflects how EVs are quickly becoming the new normal across Asia. So where does the Asian EV market stand today, and where is it headed next? Let’s take a closer look.
EV Market Status in Asia and Worldwide in the First Half of 2025
How did the EV market perform in the first half of this year? Benchmark Mineral Intelligence, an EV supply chain research and insights firm, reported via Rho Motion on July 15 that global EV sales reached 9.1 million units in the first half of 2025. BloombergNEF projects that worldwide EV sales will exceed 20 million units this year. Notably, EVs now account for 25% of all new vehicles sold, and more than 60% of those EV sales happened in Asia.
According to Statista, a global market data and consumer insights platform, Asia’s electric vehicle market revenue is forecast to reach $407.6 billion in 2025. With a steady annual growth rate of 2.68%, the market is expected to hit $453.1 billion by 2029, pointing to Asia’s ongoing leadership in the global EV market.
Country-by-Country Analysis
China
China is at the very heart of the world’s EV market, accounting for almost two-thirds of global EV sales. BloombergNEF estimates that next year, EV sales in China will surpass the total number of all new vehicles sold in the US. In the first half of 2025, China sold 5.458 million ‘new energy vehicles’ (which includes EVs, plug-in hybrids, and hydrogen vehicles), out of 10.89 million passenger cars sold overall. Cumulative EV sales are expected to reach 14 million—an overwhelming figure. China also leads the world in battery production, supply networks, and the number of charging stations.
This explosive growth is fueled by aggressive government policies, such as up to $2,730 (20,000 yuan) in incentives for trading in old cars, and tax breaks of up to $4,170 when buying a new energy vehicle. The market offers everything from high-performance SUVs to affordable compact EVs and commercial vehicles.
Over 100 domestic and international brands—including BYD, Tesla, and NIO—vie for market share, creating fierce competition. In some big cities, EVs claim over 53% of monthly new car sales. Domestic brands are also actively expanding into Southeast Asia and Europe. According to Bloomberg and other outlets, “In 2025, China sets the global standard for EV mass adoption and technological innovation.”
Korea
Korea’s EV market is also growing rapidly. In the first half of 2025, a record 93,569 new EVs were registered—a 42.7% year-over-year increase. EVs now make up about 9% of all new car registrations (71,967 units from January to May). Competition between brands is fierce: Kia’s new EV3 has taken the top spot, with Tesla and Hyundai following close behind.
The Korean government has set a 20% target for environmentally friendly vehicle sales, offering around 1 trillion won in subsidies, supporting the deployment of 440,000 chargers nationwide, and introducing various tax and insurance breaks. A key trend is the dominance of younger buyers (in their 30s and 40s), who drive the popularity of eco-friendly SUVs and compact EVs for city living. Close collaboration between battery, IT firms, and automakers—such as LG Energy Solution and global exports—is also remarkable. However, potential risks—including slower economic growth and export restrictions—require ongoing attention, even as annual growth is expected to remain between 11% and 13% through 2029.
Japan
Japan’s EV market is valued at about $6.95 billion (¥960 billion) this year. Leading manufacturers like Toyota, Honda, and Nissan balance between hybrids (HEVs) and EVs—a dual strategy, with EVs making up only 5–7% of new car sales, while over half are hybrids.
Japan’s government has set bold targets: by 2035, all new cars will be electrified, with 31,600 charging stations available as of 2023 and generous subsidies and tax breaks for buyers. However, market analysts agree that Japan’s EV growth has been relatively slow compared to its neighbors, due to a focus on higher-priced models, slow charging infrastructure expansion, and gradual changes in consumer attitudes. Despite these hurdles, Japan continues to find growth by improving battery efficiency and targeting niche markets like mini and compact EVs.
Southeast Asia & India
In 2025, new EVs account for about 13–18% of car sales in Thailand, Indonesia, and Vietnam, with annual growth rates exceeding 41%. Rapid expansion is driven by government incentives, the promotion of local manufacturing, and expansion of charging infrastructure.
Thailand’s “30@30” strategy aims to make 30% of all cars EVs by 2030. Indonesia encourages local production, while Vietnam’s domestic brand VinFast rapidly increases its market presence. Nikkei Asia and Bloomberg report that global brands like BYD, Hyundai, Tesla, and Toyota are dramatically ramping up competition throughout the region.
Key Trends in Asia’s EV Market (2025)
The Asian EV market is evolving on several fronts—battery technology, charging infrastructure, software, and consumer trends.
1) Battery Technology & Supply Chain Leadership
China currently owns 80% of global EV cell production and over 85% of the key material supply. Korea and Japan are investing in next-generation batteries (like LFP), and Indonesia is emerging as a crucial player by supplying half the world’s nickel. China is further reinforcing its position by limiting exports of advanced battery technology and focusing on domestic R&D.
2) Charging Infrastructure & Smart Software
In 2024 alone, China installed 850,000 new public charging stations, with a goal of 12 million by 2030. Cities like Seoul and Singapore are integrating smart city projects with EV charging and energy management systems. Efforts are being made to expand innovations like vehicle-to-grid (V2G) technology and AI-driven energy optimization.
3) Intensifying Brand & National Competition
Chinese brands such as BYD, Tesla, and NIO are expanding rapidly into Southeast Asia, Europe, and South America. Korean brands Hyundai and Kia focus on SUVs and digital services, while Japan excels in HEVs, microcars, and long-lasting vehicles. Southeast Asia and India see both global and local companies cooperating and competing at once, using incentives and local production to lower prices.
4) Consumer Patterns & Market Polarization
In major cities, younger buyers prefer high-tech features like connected services and autonomous driving, while in smaller cities and emerging markets, affordable pricing and lower operating costs are more appealing. Subscription and car-sharing EV models are also gaining traction.
To summarize, Asia’s EV market is advancing through a triple innovation engine—batteries, charging infrastructure, and software—while competition between brands and changing consumer preferences drives the sector forward. China’s tech ecosystem, Korean and Japanese innovation, and Southeast Asia’s rapid policy-driven expansion are all central to this evolution.
Outlook for Asia’s EV Market
According to BloombergNEF, over the next five years, Asia’s EV market is projected to grow by 10–13% annually, surpassing $450 billion by 2029. China will continue to lead, both domestically and through exports; Korea will leverage its ecosystem of batteries, IT, and automaking; and Japan will excel through its dual focus on hybrids and small vehicles. Southeast Asia and India are becoming new EV manufacturing hubs, largely thanks to affordable local production.
Consumer trends are diversifying, with affordable EVs and premium SUVs both in demand, and new business models like EV-based subscription and sharing services emerging. Challenges remain, such as energy and battery material risks and changing global trade environments. However, Asia will undoubtedly remain the epicenter of global EV innovation—driven by a mix of policy support, consumer enthusiasm, and fierce competition.
If you want to connect with current industry experts in Asia—such as vehicle platform engineers, battery researchers, or OEM supply chain professionals—for the most accurate and practical insights, reach out to Liahnson & Company. We can connect you with exactly the right specialist in less than 48 hours.
Reference
https://www.statista.com/outlook/mmo/electric-vehicles/asia
https://www.iea.org/reports/global-ev-outlook-2025/electric-vehicle-batteries
답글 남기기