Malaysia, Thailand, Indonesia emerge as launchpads for China's EV giants
BMI said the most notable trend is the continued expansion of Chinese automakers such as Geely, GAC, and Changan, who are using the Asean region, particularly Thailand, Malaysia, and Indonesia, as key launchpads for their global ambitions.
"Geely has announced a landmark investment in Malaysia to transform Tanjung Malim into a major automotive hub, while also pursuing collaborations in Indonesia aimed at developing a homegrown EV by 2026.
"GAC and Changan are similarly increasing their presence, with Changan leveraging its manufacturing footprint in Malaysia to support regional growth and GAC introducing flagship models and supply chain capabilities at regional expos," it said in a recent note.
According to BMI, the EV supply chain itself is seeing robust investment, underpinned by a drive for localisation and electrification.
It added that Thailand is experiencing a surge in EV demand, with sales expected to jump over 40 per cent in 2025, supported by government incentives and the establishment of domestic battery manufacturing facilities like Amita Technology's gigafactory.
In Malaysia, BMI said Geely's large-scale commitment is attracting further supply chain investments, reinforcing its position as a regional automotive manufacturing powerhouse.
However, it noted that the most significant announcement of the quarter in terms of project value is Contemporary Amperex Technology Co Ltd's investment in Indonesia.
"This major gigafactory project is finally taking shape and represents another example of mainland Chinese companies leveraging Asean as a launch platform.
"The project, known as the Indonesia Battery Integration Project, aims to cover the entire battery value chain—from nickel mining and processing to battery materials, manufacturing, and recycling—within the FHT Industrial complex," it said.
Meanwhile, BMI reported tracking 30 new automotive manufacturing investments across Asia in the first quarter of 2025 (1Q25), with a total value of US$10.6 billion.
This represents a significant decrease in the number of projects tracked from 41 in the previous quarter.
BMI noted that the total investment value for projects with available information was significantly higher in 1Q24 at US$54.6 billion and also 4Q24 at US$54.6 billion.
Throughout 2Q25, BMI said it saw a continued increase in the number of EV-related investments, with a number of new projects announced in the growing EV supply chain in Asian emerging markets such as India, Indonesia, Thailand and mainland China.
Nevertheless, BMI said the tariffs announced by the United States President Donald Trump on March 26, have had a negative impact on certainty investment patterns in Asia, especially for the automotive sector.
"Reflecting this, the number of investments identified in Asia fell sharply from 41 in 1Q25 to just 30 in 2Q25.
"These tariffs, aimed at protecting US national security and manufacturing, have led companies to reassess their global strategies, with Japan emerging as the most affected market," it said.
BMI also noted that both Nissan's and Toyota's strategic adjustments reflect the broader recalibration among global automakers as they respond to new tariff regimes and intensifying competition in the EV market.
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