Cover image: Liu Xueliang, General Manager of BYD Asia-Pacific, speaks during a launch ceremony in Jakarta, Indonesia, January 18, 2024. REUTERS/Willy Kurniawan

The Beijing Auto Show serves as a significant event for the automotive industry. This month’s auto show is highly anticipated, as it presents an opportunity for Chinese and overseas companies to showcase the latest innovations and advancements in the automotive sector. Chinese companies have been focusing their efforts on EVs and are striving to establish themselves as global brands with ongoing innovations taking place in the automotive industry.

Influence Matters has stepped into the automotive industry for years. With a keen focus on the Southeast Asian market, we noticed a new trend for Chinese EV companies to go global in this thriving market.

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Especially with regards to China’s domestic new energy vehicles, as they are continuously reshaping the perception of domestic brands and providing a refreshing experience for the audience.

Expanding Opportunities Await Chinese EVs in the SEA Market

Chinese automakers have gained massive attention globally, especially for EVs. As Chinese EVs offer innovations and lower production costs, Southeast Asia has become one of the biggest markets for exporting. Statics show that the Southeast Asian automotive market witnessed 3.37 million units sold in 2023, and this number is projected to reach an impressive 4 million units by 2025. The implementation of the Regional Comprehensive Economic Partnership (RCEP) will further promote the development of the automotive industry in the region.

Based on the promising outlook and policy support, numerous Chinese companies continue to make significant investments. From a global perspective, China’s automotive manufacturing technology is progressing rapidly. Many Chinese enterprises, including CheryAutomobile and BYD, plan to expand their exports. BYD has even surpassed Tesla as the world’s top-selling electric vehicle manufacturer.

At the 2024 Indonesia International Motor Show (IIMS 2024), companies such as BYD, SAIC-GM-Wuling, and CheryAutomobile captivated audiences with their new model launches. The successful launch of BYD’s electric car in Southeast Asia in January 2024 stands as a testament to its relentless pursuit of market leadership. This market already has an understanding of Chinese EVs and is expecting more.

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Chinese companies are now investing heavily in Indonesia and bringing consumer tech and cars, manufactured in Indonesia by Chinese companies.

Shattering Boundaries: Strategies for Market Expansion

In the Southeast Asian market, Chinese companies also face intense competition from global automakers. It is crucial to establish reliable Chinese brands and highlight innovation and high performance in EVs. Moreover, achieving success in the automotive industry is contingent upon understanding and promptly responding to the evolving demands of the local markets.

At Influence Matters, we specialize in exploring the Asian market and have successfully assisted numerous Chinese and international companies with ready-to-implement communication strategies. Here, we present the key strategies for market expansion in the Southeast Asian market, which hold immense potential for automotive growth and development.

1. Innovation and Differentiation: Brands need to showcase their unique value proposition through innovation and differentiation, connecting with consumers on an emotional level through compelling brand storytelling.

2. Embracing the Local Market: Success depends on actively immersing in the local socioeconomic fabric and industrial ecosystem, responding to the evolving demands of the market. For example, in Indonesia, adapting to local consumers’ preferences for affordability, reliability, and practicality in electric vehicles is crucial.

3. Technological Advancements and Revolutionary Marketing: Chinese automotive brands dominate NEV technology but must continue investing to maintain their edge. They should also embrace revolutionary marketing approaches and create engaging content to usher in a new era of brand storytelling, challenging the norms of traditional marketing channels.

As the curtains rise on the Beijing Auto Show, Chinese automotive companies stand on the precipice of immense potential, ready to spread their wings and soar to new heights. The Southeast Asian market shines as a beacon of opportunity, urging them to seize the moment. Equipped with captivating insights, strategic innovations, and a deep understanding of local nuances, these visionary companies are poised to leave an indelible mark on the global stage. Let us embrace this exhilarating journey together as we witness the triumph of Chinese brands in Southeast Asia’s thriving market.