Indonesia grew 15.9% and Thailand 15.1%, while Singapore and Malaysia increased 6.9% and 2.6%, respectively. The Philippines recorded a 6.1% decline, according to PwC's latest ASEAN-6 Automotive Market Overview

As demand for electrified vehicles grows, competition is expanding beyond products to manufacturing, technology and the ecosystem supporting users.

Vietnam leads growth as hybrid sales accelerate

Total auto sales across the ASEAN-6 reached about 1.76 million vehicles in the first six months, up 11.1% from a year earlier.

In Vietnam, growth was supported by strong GDP expansion, an 83% increase in hybrid vehicle sales and a 23% rise in demand for imported vehicles.

Electrified vehicles (xEVs), including battery electric and hybrid vehicles, accounted for 32% of ASEAN-6 sales in the first half of 2026, more than double the 14% recorded in 2024. Adoption, however, varied widely across markets, ranging from 86% in Singapore to 13% in Malaysia and the Philippines.

In Vietnam, the shift is not limited to battery electric vehicles but also includes hybrids. PwC said hybrids were emerging as an important transitional technology, with sales of the vehicles rising 83% in the first six months of the year.

The trend is also evident at Toyota Motor Vietnam (TMV). The company's first-half business results showed total sales of 36,669 vehicles, up 22% from the same period in 2025. Hybrid Electric vehicle sales alone reached 7,081 units, up 106%. Toyota has sold more than 29,200 hybrid electric vehicles in Vietnam over the past six years.

The automaker is also focusing on domestic production. In a statement issued on July 20, 2026, TMV said it planned to invest $360 million to modernize its plant and build a production line for its first hybrid electric model in Vietnam.

At a ceremony on August 28, 2026, to receive an adjusted investment policy decision and amended investment registration certificate for the plant modernization project in Phu Tho province, TMV general director Osamu Hirata said the project would help maintain the supplier network, boost localization, promote technology transfer, create jobs and increase tax revenues, while aiming to make Phu Tho an automotive manufacturing hub in northern Vietnam.

Hybrid vehicles are therefore becoming not only a product trend but also part of the investment and manufacturing story in Vietnam.

Honda Vietnam (HVN) is also expanding its electrified vehicle lineup. According to information released by HVN on May 29, 2026, on its fiscal 2026 business results, the company sold 28,238 cars. During the fiscal year, Honda introduced the e version of the HR-V and, for the first time, locally assembled the hybrid version of the CR-V at its Phu Tho plant, with e RS and e L variants.

HVN said the expansion of its hybrid lineup came as demand for hybrid products continued to increase, with the company aiming to offer a more diverse range of vehicles in line with market trends.

Electrification race expands to manufacturing and services

Electrification is reshaping competition in the auto market. According to PwC, in the electrified vehicle segment across the ASEAN-6, VinFast and Chinese brands have overtaken traditional automakers from Japan, the United States, Europe and South Korea in sales.

Chinese brands accounted for 47% of electrified vehicle sales in the region, while VinFast led among individual brands, followed by BYD and Toyota.

In Vietnam, VinFast delivered about 116,000 vehicles in the first half of 2026, accounting for roughly 40% of the market. More affordable models such as the VF3 and VF5 have expanded the mainstream SUV segment, while the Limo Green, a model targeting fleet customers, became Vietnam's best-selling car during the period.

By value, China became Vietnam's fastest-growing major source of vehicle imports, reflecting the growing presence of new brands and vehicle models.

Tesla's establishment of a legal entity in Vietnam in September 2026 was also cited by PwC as a new signal of the market's attractiveness, although the company has not announced when it will begin sales or detailed operating plans.

As electrification scales up, vehicle technology and specifications are no longer the only factors determining competitiveness. According to PwC, access to charging stations, financing, insurance, after-sales services, battery services, total cost of ownership and resale value are becoming essential elements of the vehicle ownership experience.

In Vietnam, VinFast's ecosystem includes around 150,000 charging ports nationwide, according to PwC, while other providers are investing in high-capacity charging networks.

Mohammad Mudasser, deputy general director of Deals Advisory – Transformation at PwC Vietnam, said opportunities in the auto industry were not simply about expanding roads or increasing the number of charging stations. Their practical effectiveness also depended on coverage, compatibility, grid capacity, reliability and the economic efficiency of charging operations.

As Vietnam's market matures, PwC said competitive advantages would increasingly lie with companies able to provide a reliable and convenient ownership experience across multiple brands, locations and throughout the vehicle lifecycle.