Thailand recorded the highest electrified vehicle (xEV) sales among ASEAN-6[1] markets in the first half of 2026, with volumes rising 47% year on year to 206,000 units, according to PwC. Sales outpaced Vietnam at 127,000 units and Indonesia at 114,000 units, reinforcing Thailand's position as a leading regional hub for electric mobility.
PwC's Overview of the ASEAN-6 automotive market: 6th market snapshot shows that electrified vehicles accounted for 32% of total ASEAN-6 vehicle sales in the first half of 2026. Thailand's xEV penetration climbed from 32% in the first half of 2024 to 53% in the same period of 2026, signalling a rapid shift in consumer demand towards battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs).
BEV sales surged by approximately 84% year on year, reflecting a wider choice of models, expanding charging infrastructure and growing consumer interest in alternatives to internal combustion engine (ICE) vehicles.
Steve Yang, Automotive Leader, PwC Thailand, said: "Thailand's rapid growth in electrified vehicle adoption marks a fundamental shift in consumer behaviour. Greater model choice, fuel-price volatility and rising sustainability awareness are making battery and hybrid vehicles increasingly practical alternatives. The next phase of growth will depend on how effectively Thailand strengthens its EV ecosystem and localises more of the value chain."
Thailand's total industry volume (TIV) also grew 15% in the first half of 2026, as the regional automotive sector underwent sweeping change driven by electrification, new investment and intensifying competition. Across ASEAN-6, TIV increased 11%, with growth led by Vietnam, Indonesia and Thailand.
"Thailand is well positioned to retain its automotive leadership in ASEAN, supported by a mature supplier ecosystem, export capabilities, policy support and continued investment from established and emerging manufacturers.
"But future leadership will not be defined by production volumes alone. The decisive factor will be Thailand's ability to localise higher-value activitiesincluding batteries, electronics, software and advanced engineeringwhile building the talent and innovation capabilities needed for the next generation of mobility," said Steve.
Localisation will define Thailand's next competitive edge
The report identifies localisation as an increasingly important source of competitive advantage across ASEAN. With ASEAN-6 light-vehicle production projected to approach six million units by 2030, decisions on manufacturing footprints, domestic supply-chain development and technology capabilities will play a greater role in shaping competitiveness and profitability. Thailand is expected to remain one of the region's primary production hubs through 2030.
Competitive pressure is also rising. Chinese original equipment manufacturers (OEMs) increased their ASEAN-6 market share to 16% in the first half of 2026, up from around 11% in 2025. In Thailand, Chinese brands are expanding through competitive pricing, broader product portfolios and investment in local manufacturing and after-sales capabilities, challenging established market leaders.
"The industry is entering a new phase in which success will be determined less by imports and more by localisation. Companies investing today are making a long-term bet that Thailand will remain ASEAN's leading automotive and EV production hub, underpinned by a deeper domestic ecosystem for batteries, components and advanced manufacturing. With the new excise tax scheme set to come into force in Thailand, the market is also expected to see a wave of consolidation, particularly among Chinese OEMs," Steve said.
Building the next mobility ecosystem
Thailand's automotive market is likely to remain multi-powertrain for the foreseeable future, with BEVs, HEVs and conventional ICE vehicles coexisting as consumers weigh cost, convenience and differing mobility needs.
"Manufacturers should treat electrification as a portfolio transition rather than a single-technology bet. The strongest players will balance powertrain choices, localise critical parts of the value chain and compete on affordability, customer experience and ecosystem partnerships, Steve said.
Beyond vehicle manufacturing, the report points to opportunities in EV batteries, charging infrastructure, software, smart manufacturing, advanced engineering and related automotive services. These areas will increasingly determine how much economic value countries capture from the industry's transformation.
"Thailand's opportunity extends well beyond purely vehicle production. The next chapter will be shaped by technology, talent and innovationand by the country's ability to build a deeper domestic ecosystem that creates and retains more value locally," Steve concluded.
[1] ASEAN-6 comprises Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.