Chinese EV sales in Southeast Asia hit the brakes on gasoline demand growth, but not so fast

China has become the dominant player in the Southeast Asian electric vehicle market, which will increasingly slow the region's gasoline demand growth.

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• Chinese EVs account for 70% of the electric vehicles sold in the big Southeast Asian economies, with the growth of EV sales supported by massive Chinese investments and exports.
• The region’s gasoline annual average demand growth slows to 2.6% during 2021-2030, compared to a potential growth rate of 3.1% without these EVs.
• The aggressive Chinese policy to secure a leading position in the region’s EV market is materially impacting gasoline demand growth. However, the vast fleet of existing gasoline cars and two-wheelers is preventing growth from slowing down even further.