Vietnam auto sector to see substantial EV growth Source: https://evlife.sg/blog/vietnam-auto-sector-to-see-substantial-ev-growth The electric and hybrid vehicle market in Vietnam is projected to experience significant growth, with forecasts indicating an increase of 25% to 30% in 2025, according to industry experts. The projections by analysts show that by the end of this year, electric and hybrid vehicles will comprise approximately 15% to 20% of total passenger car sales in Vietnam. This growth is anticipated to be driven by popular models from manufacturers such as VinFast, Toyota, Honda, Hyundai, Kia, BYD and MG. The most dynamic and appealing segments for consumers are expected to be small electric cars, affordable electric vehicles and mid-range hybrids. The Oto.com.vn Market Research Department under Nextgen Vietnam Joint Stock Company (Oto.com.vn) reports that the growth of the electric vehicles (EVs) market in Vietnam is driven by several key factors, including government incentives, increasing infrastructure expansion for more EV charging stations, new model launches and rising consumer awareness. The significant rise in green car sales in Vietnam in 2024 marks a strong shift towards sustainable transport. With 97,000 electric and hybrid vehicles sold, making up over 22% of total new passenger car sales, the market is clearly embracing environmentally friendly alternatives. Of those VinFast dominated the market with 87,000 electric cars, showing strong local brand preference and trust. Toyota followed with 5,350 hybrid cars, reinforcing its hybrid technology expertise. Meanwhile, Suzuki and Honda sold 2,515 and 1,905 hybrid cars, respectively, indicating growing consumer interest in more fuel-efficient vehicles. Vietnam’s commitment to carbon neutrality by 2050 is driving strong policies to support EV adoption. The government has implemented significant incentives including a 0% registration fee for battery electric vehicles from March 1, 2022, to Feb 28, 2025, followed by a 50% reduction compared to gasoline and diesel vehicles from March 1, 2025, to Feb 28, 2027. At the same time, major enterprises such as VinFast, V-Green, Petrolimex, PV Power, EVN and private investors are rapidly expanding Vietnam’s EV charging infrastructure. These investments create more convenience for EV users, addressing a key barrier to adoption. Growing environmental awareness and lower operating costs make EVs increasingly attractive to consumers. With strong policy support and market momentum, electric cars are becoming a mainstream trend in Vietnam, aligning with global green transformation goals. The launch of VinFast’s low-cost mini SUV VF3 in May 2024 created a market sensation, attracting nearly 27,700 deposits in just 66 hours and generating over 30,000 searches for VF3 car price on Google. With the presence of models like VinFast VF3 and VF5, the Vietnamese market is also witnessing an influx of electric cars from China. Demand for EV pricing information spikes during new car launch events, reflecting growing consumer interest. Many international brands plan to expand in Vietnam, introducing competitively priced EVs, making green vehicles more accessible to consumers.

Nikola goes bankrupt, capping troubled EV maker’s long slide Source: https://evlife.sg/blog/nikola-goes-bankrupt-capping-troubled-ev-maker%E2%80%99s-long-slide Nikola Corp filed for bankruptcy, culminating a long slide for the onetime darling of the electric vehicle (EV) industry, which struggled with weak sales and cycled through chief executive officers in the wake of a fraud scandal. The company plans to liquidate its assets after entering Chapter 11 in Delaware on Wednesday. In court documents, it listed assets between US$500 million (RM2.22 billion) and US$1 billion, and liabilities between US$1 billion and US$10 billion. The filing caps a struggle by the maker of electric and hydrogen-powered semi trucks get a handle on dwindling cash, slow sales and a collapsing stock price. Bloomberg reported earlier this month that Nikola was exploring a possible bankruptcy filing as the company acknowledged it was “relentlessly working to raise capital”. Nikola’s shares plunged 54% as of 8am Wednesday before regular trading in New York. The stock lost 97% of its value over the past 12 months through Tuesday. The company has been on a tumultuous journey since it went public in 2020 through a deal with a special purpose acquisition company, with its stock surging in its early days. Shortly after, Bloomberg News reported that founder Trevor Milton had overstated the capability of Nikola’s debut truck. Those allegations, coupled with a subsequent short-seller campaign targeting the company, led to Milton’s ouster and later conviction on fraud charges. In recent years, the company has endured cash-flow issues, slow demand and executive turnover. Nikola also recalled its battery-electric trucks after battery fires in 2023 prompted it to temporarily halt sales. Chief executive officer Steve Girsky, a former Morgan Stanley analyst and General Motors Co executive, had been leading a recent effort to raise money or find strategic alternatives, Bloomberg reported. EV tumult Nikola is the latest manufacturer to succumb to a punishing environment for EVs, which are struggling to maintain traction due to high costs, spotty charging infrastructure and lukewarm customer interest. Fisker Inc filed for Chapter 11 bankruptcy in June, while Canoo Inc announced a Chapter 7 filing Jan 17 — both companies, like Nikola, went public via blank-check reverse mergers during a wave of such listings in 2020. Swedish battery maker Northvolt AB filed for bankruptcy protection in the US in November. With its bankruptcy filing, Nikola is seeking authorisation to pursue an auction and sale process, the company said in a statement. The company said it intends to meet obligations to employees, and it has US$47 million of cash on hand. Nikola’s market value peaked at US$29 billion in the days after it began trading, but it had fallen to less than US$100 million before the filing.

Tesla begins production of refreshed Model Y at Gigafactory Shanghai Source: https://evlife.sg/blog/tesla-begins-production-of-refreshed-model-y-at-gigafactory-shanghai Tesla says it has officially begun production of the newly refreshed Model Y at its Shanghai manufacturing plant. Tesla took to X (formerly Twitter) on Tuesday to announce that it had begun production of the new Model Y at Gigafactory Shanghai, with first deliveries beginning within weeks in China. The sales of the refreshed Model Y will be closely watched by the industry, following a plunge in Tesla sales numbers around the world in January – a fall some put mainly to buyers holding off for the new model, and others suggesting it is the result of pushback against CEO Elon Musk’s controversial role in the Trump administration The company’s Chinese website also now lists the revamped Model Y as available for order, with a rear-wheel-drive version starting from RMB 263,500 ($A57,000, converted), and a long-range all-wheel-drive model starting from RMB 303,500 ($A65,800, converted). Orders have been open since January for the new Model Y on the Australian Tesla site, though the car is pricier than a simple conversion from China’s pricing might have suggested. The rear-wheel-drive variant starts at $69,032 drive away, and $79,452 drive away for the long-range all-wheel-drive variant. Tesla unveiled the so-called “Juniper” refresh earlier this year, boasting a redesign intended to maximise efficiency, increased performance, a quieter cabin, updated wheel and tire package, and new lighting. The new Model Y boasts up to 719km for the long-range all-wheel-drive first edition, and 593km for the rear-wheel-drive first edition. Ranges vary depending on all the modifications and options available. And while the exterior facelift has given the Model Y a bit of an upgrade, with a cut-through light cluster design for both the front and tail, the car still looks like someone overinflated a Model 3.

Southeast Asia’s EV ambitions face ‘regulatory fragmentation’ roadblock: Xpeng president Source: https://evlife.sg/blog/southeast-asia%E2%80%99s-ev-ambitions-face-%E2%80%98regulatory-fragmentation%E2%80%99-roadblock:-xpeng-president Southeast Asia’s electric vehicle market is primed for rapid expansion, but the lack of a unified legal framework and fragmented regulations could undermine its EV ambitions, Xpeng president Brian Gu has warned. Speaking at the South China Morning Post’s China Conference: Southeast Asia 2025 on Monday, Gu acknowledged the region’s immense potential but cautioned that inconsistent policies on manufacturing incentives and emerging technologies could discourage investment. “Asean’s EV growth rate is actually among the highest globally. That is very exciting,” said the head of Xpeng, a leading Chinese EV maker. “Regulatory fragmentation is one of the biggest challenges.” Gu, speaking on a panel about Southeast Asia’s ambitions to become an EV hub, pointed out that the lack of a clear legal framework for advanced EV technologies was making it difficult for manufacturers to introduce new models in the region. He said this was in contrast to China, where the EV boom has led to policies specifically tailored to the sector. Founded in 2014, Xpeng has positioned itself as a smart EV company, launching its AI Chauffeur autonomous driving system last year. However, the technology is currently only available in China due to regulatory limitations elsewhere. Gu cited Level 3 autonomous driving – which allows drivers to take their hands and eyes off the wheel under certain conditions – as an example of regulation, rather than technology, being the main roadblock. “We can already do it,” he said. With a population nearing 700 million and the world’s fifth-largest economy, the 10-member Association of Southeast Asian Nations (Asean) is home to the world’s sixth-largest automotive market and growing. Thailand leads as the region’s biggest carmaker, while Malaysia and Vietnam have developed their own homegrown auto industries. The EV sector, in particular, is booming. Sales are surging across the region, with the market projected to quadruple in size from US$1.5 billion in 2025 to more than US$6 billion by 2030. On Asean’s collective goal to establish itself as an EV hub, Gu emphasised the region’s diverse strengths. He highlighted mining capabilities as being essential for battery production as well as Malaysia’s hi-tech manufacturing sector. “Both from a design perspective and later-stage development, Malaysia has a strong presence,” he said, adding that semiconductors were key to smart mobility. “Leveraging Malaysia’s expertise in semiconductors to drive innovation in Asean, and specifically Malaysia, would be highly beneficial,” Gu said. The one-day conference in the Malaysian capital, organised by the South China Morning Post, saw Southeast Asia similarly praised by other speakers. Ronnie Lim, group CEO of subsea cable infrastructure provider OMS Group, called it one of the most dynamic and high-potential markets in the world. He said this dynamism is driven by Asean’s strategic location between China and India, its position straddling the Indian and Pacific Oceans, its diverse and growing population, and its rapid adoption of digital technologies. This includes the rise of 5G networking, AI-driven economies and major investments in cloud computing from Microsoft, Google, Amazon and Nvidia. “We have one of the youngest and most tech-savvy populations globally, and this presents a huge opportunity for services,” Lim said. However, Daniel Ren, SCMP’s Shanghai bureau chief, voiced concerns that Asean’s EV ambitions might hit the same wall experienced by Chinese manufacturers. “The US and the EU have already criticised China and Chinese EV makers for exporting at a scale that they claim is excessive for their markets,” Ren said. “If they are saying there’s already an oversupply, what does that mean for Asean’s development?”

European car giant to use BYD batteries for low cost and short range Citroen and Fiat EVs Source: https://evlife.sg/blog/european-car-giant-to-use-byd-batteries-for-low-cost-and-short-range-citroen-and-fiat-evs European automotive giant Stellantis has reportedly signed a deal with Chinese electric automaker BYD for lithium iron phosphate (LFP) batteries for new short-range versions of its Citroën ë-C3 and Fiat Grande Panda which will go on sale for less than €20,000. French automotive magazine L’Argus reported over the weekend that Stellantis had turned to BYD to supply LFP batteries for new short-range variants of the ë-C3 and Grande Panda, both of which are based on the same Stellantis Smart Car platform. Currently, the two cars boast a 113hp engine powered by a 44kWh LFP battery that delivers up to 320 kilometres (WLTP) in range, and both retail for between €23,000 and €25,000 (around $A37,800 to $A41,000, converted, though neither is available in Australia at this time). But Stellantis is hoping to offer cheaper, sub-€20,000 ($A33,000) variants of both the ë-C3 and Grande Panda, and will reportedly be using BYD LFP batteries to help reduce costs. With the reduced price of the cars will come a reduced range, which L’Argus pins at between 200 and 250km (WLTP) from a battery in the range of 30-35kWh. L’Argus expects the Citroën ë-C3 to be the first of the new short-range variants to hit the market, starting in the middle of this year, with the Fiat Grande Panda following by year’s end. If true, this would give Stellantis a head start on big-name local competitors Renault and Volkswagen, which are expected to debut their own sub-€20,000 in the coming years, including the Renault Twingo E-Tech (2026) and Volkswagen ID.1 (2027). It would also position the two cars against another Stellantis model, the €19,500 T03 from Chinese automaker Leapmotor, of which Stellantis is a stakeholder. The report also lends further credence to BYD’s efforts to position itself as a major player in the electric vehicle (EV) battery market. A report published by South Korean market research firm SNE Research earlier this week showed that BYD was second only to Chinese battery giant Contemporary Amperex Technology Co., Limited (CATL) in terms of market share, accounting for 17.2 per cent of batteries used in EVs for 2024, thanks in large part to its own dominance as an EV maker.

Porsche to cut 1,900 jobs in Germany after EV demand slumps Source : https://evlife.sg/blog/porsche-to-cut-1900-jobs-in-germany-after-ev-demand-slumps PORSCHE AG will trim its workforce by 1,900 employees by the end of the decade in response to weak electric vehicle demand and “challenging geopolitical and economic conditions.” The Volkswagen AG-controlled luxury brand plans to reduce headcount at two German sites through voluntary measures like early retirement and severance packages, and will take a “restrictive approach” to new hires, it said Thursday. The goal is to reduce staffing in Zuffenhausen and Weissach by 15% by 2029. Porsche is grappling with a drop in EV demand, and was among the major automakers to walk back its EV targets last year. Challenges with making the jump to electric cars have cost the 911 maker dearly in China, where deliveries have slumped, piling on pressure to cut costs. The company will take an €800 million ($831 million) hit this year tied to developing products, with more combustion engine and plug-in hybrid models. A job security agreement remains in force for all German employees until 2030, which means voluntary measures will be employed until then. The cuts, reported earlier by the Stuttgarter Zeitung, follow a decision to stop renewing contracts of temporary workers. Languishing EV demand has reportedly prompted other Volkswagen-owned brands to consider additional upgrades to their combustion engine lineups. VW could update best-selling models including the Golf hatchback and T-Roc and Tiguan sport utility vehicles in the 2030s, and Audi is having similar discussions regarding the A3 compact model, Handelsblatt reported late Wednesday. “Volkswagen has not changed its plans to phase out the combustion engine in Europe by the early 2030s and will react flexibly to possible market changes,” the brand said in an emailed statement. Porsche is following Volkswagen’s lead in trying to whittle down its production costs in Germany, where labor and energy are expensive. Volkswagen clinched its own deal with labor leaders late last year to slash production capacity and reduce headcount by 35,000 employees over the next five years. In China, European carmakers are losing out to local brands, which caused their sales in the world’s largest car market to tumble last year. And they face further pressure closer to home, with large fines if they fail to meet stricter EU fleet-emissions rules slated to kick in this year.

VinFast speeds up EV deliveries but struggles to sell outside Vietnam Source: https://evlife.sg/blog/vinfast-speeds-up-ev-deliveries-but-struggles-to-sell-outside-vietnam Vietnamese electric vehicle maker VinFast said on Thursday it delivered about 97,000 cars last year, nearly three times as many as in 2023, but sales were almost exclusively in its domestic market. The company said it planned to at least double global sales this year, buoyed by a large increase in deliveries in the last quarter of 2024, when it sold more than 53,000 cars, more than half its total annual sales. The 2024 deliveries exceeded a revised-down sales target of 80,000 units. VinFast had initially planned to sell 100,000 cars last year. "VinFast's 2024 results exceeded expectations, demonstrating resilience in the face of market fluctuations and macroeconomic volatility," said VinFast Chairwoman Thuy Le. The startup is pursuing an aggressive but costly expansion strategy in Vietnam, where it can rely on a growing market of nearly 100 million people. In the last quarter, sales were also boosted by the introduction of a much cheaper and smaller model. However, the company lost nearly $2 billion in the first three quarters of last year, latest available data show, after posting $2.4 billion in losses in 2023. That is putting pressure on its parent company, Vietnamese conglomerate Vingroup. The carmaker also wants to expand abroad but has so far struggled to attract foreign buyers. In a previous statement in January, VinFast said it had sold more than 87,000 units in Vietnam last year. Barring a revision of its own figures, that would mean only about 10,000 cars were sold abroad, around 10% of total sales. Last year the company postponed plans for a factory in the United States, in what appeared as a shift to Asian markets, and in particular to India and Indonesia, where it plans to establish two assembly factories. VinFast did not provide a breakdown of sales by market. Most of its sales in Vietnam in 2023 were to companies linked to its owner Pham Nhat Vuong, including electric taxi operator Green SM, or GSM, which in the last quarter of 2024 overtook Southeast Asian ride-hailing giant Grab as the top taxi company in Vietnam, according to research firm Mordor Intelligence. A full breakdown of domestic buyers for last year is not available, but in the third quarter about 20% of total deliveries went to VinFast's related parties, according to its quarterly earnings. The company is expected to release full-year results on April 24.

Proton Sets Up New EV Plant, Signaling Malaysia’s Strong Strides To Grow Its EV Ecosystem Source : https://evlife.sg/blog/proton-sets-up-new-ev-plant-signaling-malaysia%E2%80%99s-strong-strides-to-grow-its-ev-ecosystem Proton is initiating the construction of a new EV production plant at its high-tech Tanjung Malim facility. The project, which began on February 7, 2025, is targeted for completion by the end of the year, with an investment of 82 million ringgit ($18.46 million). The first phase of the assembly plant is planned to have an initial capacity of 20,000 units per year. Upon completion, the facility will produce multiple models based on the Global Modular Architecture (GMA) platform, starting with the Proton e.MAS 7, marking the first EV model from a Malaysian automotive brand. Proton has plans for a second phase to increase production capacity to 45,000 units per annum, contingent on sales demand in Malaysia and overseas markets. Li Chunrong, Proton’s chief executive officer, stated that the vehicles produced at the new plant will serve both domestic and export markets, aiming to drive the growth of the EV market. He emphasized that the factory would focus on producing the Proton e.MAS 7 and future new energy vehicle offerings as Proton expands its model range. “Ultimately, we hope our success will establish a modern and capable automotive ecosystem to encourage more original equipment manufacturers to consider Malaysia and the Automotive High-Tech Valley as a regional base for EVs,” he added. The Proton plant makes Malaysia on fast-track mode, a sort of catch-up in its EV ecosystem development. Aside from the national automaker’s plant, there are other significant strides to hasten development in the sector. The company has outlined plans for a second phase of expansion at the Tanjung Malim site, potentially increasing annual production capacity to 45,000 units, contingent on market demand. While utilizing advanced production technologies, Proton anticipates the new plant will generate over 200 specialized jobs in EV industrialization and technical services for the local community. The company also expects the plant’s operations to stimulate growth within the Automotive High Tech Valley’s vendor community as demand for parts increases. Adding To The EV Ecosystem In addition to Proton’s endeavors, EP Manufacturing Berhad (EPMB) has announced plans to establish an automotive manufacturing facility in Melaka. The facility, set to be developed in several phases at the HICOM Pegoh Industrial Park, aims to serve as a manufacturing hub for energy-efficient vehicles (EEVs) and EVs in Malaysia. The first phase is expected to have a potential annual production capacity of 30,000 vehicles and is anticipated to be operational by the end of 2024. This development is projected to generate approximately 1,000 new jobs in Melaka, strengthening the local automotive industry and accelerating Malaysia’s vision to become a regional hub for EVs and EEVs. Ahmad Razlan Mohamed, Group Chief Executive Officer of EPMB, expressed enthusiasm about the project, stating that the establishment of an EV manufacturing facility is a pivotal step in realizing their comprehensive vision of developing a 360° supply chain for Malaysia’s EV market. Samsung Is A Major Investor In February 12, 2024, Samsung Electronics Executive Chairman Lee Jae-yong visited the Samsung SDI’s battery production facilities in Seremban, Malaysia. Lee emphasized the importance of long-term investment. “We shouldn’t be intimidated by difficulties, and make bold investments,” he stated. “Let’s not be carried away by short-term results — we should lead the change by boldly taking on challenges,” he said, signaling a commitment to continued growth despite a recent slowdown in global EV demand. He met with Samsung SDI executives, including CEO Choi Yoon-ho, as he inspected the facilities. The Seremban factory, established in 1991, has been producing battery cells since 2012. Samsung SDI’s second plant at the site, a RM7 billion ($1.3-billion) investment, is scheduled for completion in 2025. Partial production of 21700 cylindrical batteries under the PRiMX brand, intended for EVs, energy storage systems, and electric power tools, is expected to begin this year. This investment marks the company’s first production location in Southeast Asia and Malaysia’s inaugural EV battery cell facility. According to reports, the plant is now entering its operational phase. This year, Chinese battery manufacturer EVE Energy has announced plans to invest in a new factory in the Kulim District, Kedah. Expected to be completed by 2027, the plant will produce cylindrical-format NMC battery cells for use in power tools, two-wheeled vehicles, and cleaning devices. These initiatives reflect Malaysia’s commitment to advancing its automotive industry and positioning itself as a key player in the regional EV market.

CATL applies to sell stock in Hong Kong, in what could be city’s largest IPO since 2021 Source: https://evlife.sg/blog/catl-applies-to-sell-stock-in-hong-kong-in-what-could-be-city%E2%80%99s-largest-ipo-since-2021 Contemporary Amperex Technology, the world’s largest producer of batteries for electric vehicles (EVs), is proceeding with a plan to list its shares in Hong Kong, in what could be the city’s biggest initial public offering (IPO) in more than four years. CATL, as the Chinese company is known, submitted its application draft with the Hong Kong stock exchange on Tuesday, following the board’s approval in December. The IPO size and timeline were not disclosed. A US$5 billion deal, as reported by Reuters, would rank as the largest since Kuaishou Technology raised US$6.2 billion in January 2021. BofA Securities, China International Capital Corporation (CICC), China Securities International and JPMorgan Chase were listed as joint sponsors, while Goldman Sachs, Morgan Stanley and UBS will also have an unspecified role in the deal, according to the draft. CATL’s yuan-denominated shares fell 2.6 per cent to 251.80 yuan in Shenzhen before the announcement, giving it a market value of 1.1 trillion yuan (US$150.5 billion). They have declined about 5 per cent this year, after a 68 per cent surge in 2024. “CATL has ambitions of expanding its worldwide footprint since it can chase higher profitability outside mainland China,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialised batteries. “With production and technological advantages over their global rivals, Chinese EV players are often welcome in overseas markets to localise their research and manufacturing expertise.” CATL said proceeds from its proposed IPO would be used to reinforce its global expansion, a move that will enhance China’s dominance in the EV supply chain. Based in Ningde in eastern China’s Fujian province, CATL controls 37 per cent of the global EV battery market, topping its rivals for the past eight years. Global EV battery shipments rose at an annual compound rate of 52 per cent to 974 gigawatt-hours (GWh) from 2020 to 2024, CATL said. They are projected to reach 3,758 GWh in 2030. One GWh can supply up to 13,000 EVs with a driving range of 500km. CATL’s net income for 2024 could rise by as much as 20 per cent from a year earlier to 53 billion yuan. It supplied 339.3 GWh of battery cells to customers in 2024, 32 per cent more than a year earlier, including to big customers like Tesla and BMW. The company announced a €240 million (US$261 million) investment to build a battery factory in Germany in 2018. It disclosed in December a plan to build a factory in northeastern Spain through a venture with Fiat’s owner Stellantis for its third production base in Europe. Chinese EV builders and supply-chain vendors are now actively seeking to set up production bases abroad as a way of bypassing punitive tariffs levied by the US and European Union last year. In January, the US added CATL to a list of entities allegedly linked to the Chinese military, which the firm denied. Hong Kong’s IPO market is recovering as more mainland-listed companies pursue a flotations to broaden their funding avenues. About 100 companies were in the IPO pipeline, according to Bonnie Chan Yiting, CEO of Hong Kong Exchanges & Clearing Limited, in an interview last month.

Chinese EV sales surge in Singapore, challenging Japanese and German brands with affordability and features Source: https://evlife.sg/blog/chinese-ev-sales-surge-in-singapore-challenging-japanese-and-german-brands-with-affordability-and-features Chinese car brands made significant inroads in Singapore’s automotive market in 2024, capturing 18.2 per cent of new car registrations, up from 5.9 per cent the previous year. Singapore’s Land Transport Authority (LTA) released the data in January, showing that 7,850 new Chinese-brand cars were registered in 2024, compared with 1,781 in 2023. The Straits Times reported that nearly all of these vehicles were electric, with only 75 exceptions. “Chinese EV brands have been particularly strong in offering mass-market options, which are not adequately addressed by automakers from other countries,” said Niels de Boer, chief operating officer of the Energy Research Institute at Nanyang Technological University. Japanese and German brands remained dominant but saw their market share decline. Japanese brands registered 15,337 cars in 2024, up by 2,298 units from 2023, but their market share fell to 35.6 per cent from 43.1 per cent. German brands accounted for 12,131 registrations, representing 28.2 per cent of the market, down from 32.4 per cent in 2023. BYD led Chinese car sales in Singapore with 6,191 EV registrations, followed by MG with 536 units. Xpeng, which entered the market in August 2024, registered 336 cars in just five months. American and South Korean brands also saw growth. American brands increased their market share from 3.2 per cent to 5.6 per cent, with Tesla accounting for 98.8 per cent of American car registrations. South Korean brands rose slightly to 7.7 per cent from 7.6 per cent, with Hyundai and Kia leading sales. The overall car market expanded in 2024, with 43,022 new registrations, a 42.3 per cent increase from 30,225 in 2023. Industry experts said the rise of Chinese brands aligns with Singapore’s transition from internal combustion engine (ICE) cars to EVs. Seven new Chinese brands entered the market in 2024, bringing the total to 11, and at least three more — Deepal, Leapmotor, and Skyworth — are expected in 2025. Singapore representatives of these brands anticipate further growth. Japanese and German brands remained dominant but saw their market share decline. Japanese brands registered 15,337 cars in 2024, up by 2,298 units from 2023, but their market share fell to 35.6 per cent from 43.1 per cent. German brands accounted for 12,131 registrations, representing 28.2 per cent of the market, down from 32.4 per cent in 2023. BYD led Chinese car sales in Singapore with 6,191 EV registrations, followed by MG with 536 units. Xpeng, which entered the market in August 2024, registered 336 cars in just five months. American and South Korean brands also saw growth. American brands increased their market share from 3.2 per cent to 5.6 per cent, with Tesla accounting for 98.8 per cent of American car registrations. South Korean brands rose slightly to 7.7 per cent from 7.6 per cent, with Hyundai and Kia leading sales. The overall car market expanded in 2024, with 43,022 new registrations, a 42.3 per cent increase from 30,225 in 2023. Industry experts said the rise of Chinese brands aligns with Singapore’s transition from internal combustion engine (ICE) cars to EVs. Seven new Chinese brands entered the market in 2024, bringing the total to 11, and at least three more — Deepal, Leapmotor, and Skyworth — are expected in 2025. Singapore representatives of these brands anticipate further growth. “The Japanese are still the benchmark for quality and reliability, but they offer very little in terms of EVs,” he added. Associate Professor Ang Swee Hoon from NUS Business School said Japanese and German brands may need to create lower-end sub-brands to compete, though this could be costly and dilute their premium image. “The popularity of Chinese car brands has been driven by their affordability at a time of rising living costs,” she said. “If economic conditions remain such that people are looking for affordability rather than aspirational, the Chinese brands stand to gain.” Singapore Management University associate professor of marketing Hannah Chang said Chinese carmakers have leveraged partnerships with Toyota and Mercedes-Benz to boost their credibility. “These partnerships not only raise their brand awareness globally but also help lend credibility and elevate consumer perception of these relatively new Chinese brands in the market,” she said. Still, she noted that competition will intensify as other automakers expand their EV offerings. Chang added that Japanese and German car brands have built strong brand equity over time, which could help them stay competitive if they innovate in EV technology and price their models strategically. Singaporeans have increasingly opted for Chinese EVs due to their affordability and features. Ler Hwee Tiong, 54, switched from a nearly decade-old Mercedes-Benz to an electric Omoda in December 2024 after testing various brands. “The price, features, and warranty contributed to my decision,” said Ler, Asia director of a global automotive repair chain. Eddie Chua, who works in sales, replaced his BMW SUV with a BYD EV in mid-2024 after noticing new EV chargers at his multi-storey carpark. He said charging costs him around S$200 (RM660) per month, significantly less than the S$500 he used to spend on fuel. His insurance and road tax costs increased, but he found the overall savings worthwhile. “The BYD’s performance is comparable to my previous car, and it’s smooth and easy to drive,” he said. However, he noted that its suspension feels soft on Malaysia’s bumpy roads. Other drivers still prefer EVs from non-Chinese brands. Michael Tan, 50, switched from a Volkswagen to a Tesla in 2022 and appreciates its high-tech features. He highlighted over-the-air updates, which improve the car’s functions remotely. Switching to an EV has lowered his costs. His monthly fuel expenses dropped from S$500 to S$120, though his road tax increased to S$5,600 from less than S$1,200.