Applications: EV

EV Demand: Asia-specific Commentary EV sales increase in parts of Asia despite market constraints, with Chinese OEMs expanding into the fast-growing South/Southeast Asian markets

East, South, and Southeast Asia (ex-China)

China Primary constraint: market saturation + policy normalization

New NEV sales exceeded 50% in 2025 with a new group of automakers Leapmoter, Hongmeng, and Xiaomi) challenging the market Entering “survival testˮ phase of EV adoption as NEV demand normalizing reflecting market correction, not technology rejection End of national EV purchase subsidies and the full purchase tax exemption starting in 2026 - the tax rate for EVs is now 5% compared to 10% for ICE vehicles Tax exemption cap for 20262027 has been halved to 15,000 yuan and will be eliminated by 2028 Early-adopter market saturation as NEV sales surpass 50% of all new vehicles sold making affordability more important following rapid early growth OEM overcapacity driving intense price competition and margin pressure causing many to export vehicles to overseas markets (i.e. BYD Charging infrastructure challenges in lower-tier cities and rural regions continues but is expected to improve with a three year action plan to establish a nationwide network of 28 million charging facilities by 2027

Source: Pivot Research, company announcements

Primary constraint: consumer caution + brand repositioning

Represents the fastest growing EV markets globally as a mix of incentives such as tax breaks and purchase subsidies across ASEAN countries Shifts in brand perception and pricing strategies influencing purchase decisions with India, Vietnam, and Thailand, accelerating rapidly Slower sales growth in mature urban markets as South Korea and Japan experiencing a ‘demand chasmʼ Revision of EV incentives to favour local manufacturing and Indonesia will remove import duty exemptions starting in 2026. Hybrids and PHEVs are gaining market share as an alternative to address range anxiety and charging infrastructure gaps. Continued consumer hurdles include higher upfront costs, limited affordable offerings, limited financing options, unreliable electricity, long-term battery durability and repair costs Regulatory uncertainties affecting product planning as local brands look to reduce reliance on China

Extracted from the PDF; charts and images may read imperfectly.