Indonesia surpasses the US for the first time in the global electric vehicle race

Indonesia has surpassed the US for the first time in the proportion of electric vehicles in new car sales, demonstrating Southeast Asia's strong acceleration in the electrification of transportation.

According to research by London-based energy consulting firm Ember Energy, Indonesia has just marked a historic milestone in its clean energy transition: the proportion of electric vehicles in total new car sales has surpassed that of the United States for the first time.

According to Ember, electric vehicles will account for more than 15% of all new car sales in Indonesia by 2025. This figure not only puts the world's fourth most populous country ahead of the US, but also reflects the remarkable pace of transformation in a market once considered "lagging behind" in the electrification of transportation.

The growth momentum stems from a combination of policy and market forces. The Indonesian government has implemented a series of incentives, including reduced value-added tax for electric vehicles that meet localization requirements, and relaxed import licensing conditions for companies committed to building domestic manufacturing plants. These policies not only stimulated consumer demand but also attracted a wave of manufacturing investment, exemplified by projects from VinFast , BYD, and Chery.

Indonesia has also become one of China's largest electric vehicle export destinations, ranking only behind Mexico, Brazil, and the United Arab Emirates (UAE). According to Ember, the growth rate of Chinese electric vehicle exports to Indonesia is currently the second highest in the world, demonstrating the increasingly important role of this market in the global supply chain.

Not just Indonesia, but the entire Southeast Asian region is accelerating its electrification of transportation. Research by Ember shows that electric vehicles now account for approximately 40% of new car sales in Singapore and Vietnam – far surpassing the UK (33%) and the European Union (26%). In the first three quarters of 2025, Thailand's electric vehicle market share reached 21%, exceeding even Denmark's. These figures reflect a rapid shift from a "low starting point" to a leading position in the trend.

Vietnam is a prime example of this rapid change. In 2021, electric vehicles accounted for less than 0.05% of the market, but have now risen to the leading group in the region. On a broader scale, the penetration rate of electric vehicles in emerging Southeast Asian economies has surpassed Japan – where electric vehicles currently account for only about 2% of new car sales.

The global landscape is also changing rapidly. While in 2019 only four countries, all in Europe, achieved a market share of electric vehicles exceeding 10%, by 2025 this number will have increased to 39 countries, including 12 outside of Europe. This shows that the electrification of transportation is no longer a story exclusive to developed economies.

Independent figures from auditing firm PwC Indonesia further reinforce this trend. According to the company's recently published "Electric Vehicle Readiness" report, the electric vehicle segment in Indonesia grew by 49% year-on-year, accounting for approximately 18% of new car sales – higher than the ASEAN average of 17%. Notably, this growth occurred against the backdrop of an overall Indonesian automotive market decline of 11% by the end of Q3 2025.

Lukmanul Arsyad, head of industrial and services at PwC Indonesia, commented: “While the traditional automotive market is shrinking, electrification is moving in the opposite direction.” Arsyad noted that although ASEAN as a whole has seen electric vehicle growth of 62%, Indonesia remains among the fastest-moving markets.

Consumer surveys also show very high levels of satisfaction. In Indonesia, 99% of electric vehicle owners said they were satisfied with their choice – the highest in ASEAN, surpassing Malaysia (96%) and the Philippines (93%). Users appreciated improved charging times, lower operating costs, and increasingly better battery life.

Source: VTV