Southeast Asia’s EV boom sidelines local car parts suppliers
Suppliers in Indonesia, Thailand and Malaysia grapple with falling demand, as Chinese carmakers favour their own networks
Local manufacturers across Indonesia, Thailand and Malaysia are facing a double squeeze: demand is weakening for parts used in petrol and diesel cars, collectively known as internal combustion engine (ICE) vehicles, while steep barriers to entry also keep them out of EV supply chains.
Analysts say repair and servicing work plus hybrids, which pair a petrol engine with an electric motor, could offer a lifeline, but without stronger government support and better access to Chinese manufacturers, the EV transition threatens to hollow out the region’s established supply base.
Chinese EV investments have so far generated minimal business for established local component makers, according to Indonesian economist Bhima Yudhistira Adhinegara.
