Southeast Asia’s EV Boom Leaves Local Suppliers Behind

Southeast Asia’s electric vehicle (EV) boom risks leaving the region’s smaller companies behind. Chinese automotive giants are bypassing local part-makers in favor of imported components and locked-in supplier networks. Local manufacturers across Indonesia, Thailand and Malaysia face a double squeeze. Demand is weakening for parts used in petrol and diesel cars, collectively known as internal combustion engine (ICE) vehicles. At the same time, steep barriers to entry keep them out of the EV supply chain.