Charging Forward: PwC’s Vision for an Electrified, Digitally Driven ASEAN

The Malaysia Automotive Robotics & IoT Institute (MARii) and PwC Malaysia have signed a memorandum of understanding (MoU) to strengthen collaboration in the automotive sector. The partnership aims to deliver data-driven insights to support Malaysia’s policies, investment strategies, and long-term industry growth.

The MoU was exchanged at the PwC Automotive Asean Conference, which brought together senior leaders and decision-makers from across the region. The conference highlighted the seismic shifts underway in the Southeast Asian automotive market.

Japanese automakers have long dominated the ASEAN market. But their grip is loosening as new players, especially Chinese EV makers, gain momentum. Competitive pricing and rising demand for electric vehicles are accelerating this shift.

In 2024, Japanese brands held 63.9% of the market in the ASEAN-6 - Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. That’s down from 68.2% the year before. While eight of the top 15 brands are Japanese, all but Mitsubishi saw declining sales.

Meanwhile, newer brands are rising fast. Malaysia’s Perodua grew 8.4%. Vietnam’s VinFast surged 179.5%. China’s BYD jumped 62%. These gains reflect the growing appetite for EVs across the region.

Additionally, EV adoption is climbing quickly - In 2023, EVs made up 9% of private vehicle sales in the ASEAN-6. That rose to 13% in 2024, reaching 351,000 units.

However, EV growth disparity is evident - Singapore leads, commanding nearly 80% market share while Philippines and Malaysia, despite seeing growth, are lagging behind, with adoption rates under 3%.

Geography and infrastructure are key factors. Compact cities like Singapore can roll out charging infrastructure more easily than larger countries or archipelagic nations.

During the conference, PwC’s Global Automotive Leader, Harald Wimmer, pointed to four major forces driving change: decarbonisation, technological disruption, regionalisation, and shifting consumer behaviour. These trends are pushing the industry toward electric and software-defined vehicles (SDVs).

Unlike traditional cars, SDVs generate revenue after the sale through software updates. Additionally, features like autonomous driving or enhanced security can be added over time even as a subscription service - unlocking new business models with endless potentials.

This shift is also changing the makeup of the industry. Modern day automotive players are partnering with software developers, battery makers, miners and energy providers. The goal is to build integrated ecosystems that support not only production but the entire consumer ownership journey.

Wimmer noted that success depends on balancing old and new. Established players can fund innovation using profits from traditional models while new startups bring in tech expertise and agility. Together, they can drive transformation.

This is where PwC comes into the picture, its Asean Automotive Centre of Excellence, led by Patrick Ziechmann, supports more than 50 participants in the region and works with over 500 experts across Asia.

According to Ziechmann, automakers must focus on three areas to stay competitive: improving operations, reinventing business models and forming strategic partnerships. Additionally, forward thinking brands who invest in digital tools, new revenue streams and talent development will eventually lead the way.