Project Overview

The market shift towards electric vehicles (EVs) highlights the agility of the ASEAN automotive industry to adapt to global trends. Unlike internal combustion engine (ICE) production, EV manufacturing involves substantial differences in production structures, supply chains, material requirements, end-of-life treatment, and labour needs – both in quantity and in skills.

At the same time, most ASEAN countries have committed to achieving net zero emissions (NZE) by mid-century. This commitment not only accelerates the electrification of transport and mobility but also requires the automotive sector itself to decarbonise and integrate circular economy principles. Both EV and ICE vehicle production must therefore embed circularity across their supply chains and lifecycles, from cradle to grave.

As a result, ASEAN’s automotive sector stands at the intersection of two powerful forces: evolving global market dynamics and national decarbonisation objectives.

The central question guiding this project is: How can the ASEAN automotive industry enhance its competitiveness while advancing decarbonisation and electrification?

The objective of this study is to provide strategic policy guidance for ASEAN member states to strengthen competitiveness and position themselves as production and export hubs for a diversified range of vehicle models, taking into account global market developments.