Kuala Lumpur, Malaysia - For Southeast Asian drivers, the success of Chinese EVs will depend on far more than the vehicles themselves. Chinese manufacturers expanding into the region must invest in local testing, charging networks, technical training and after-sales services rather than export cars, industry representatives said at the 2026 Land-Sea Economic Forum, which opened in Kuala Lumpur on July 30.

At a roundtable on intelligent transportation and investment in the new energy vehicle industry, panelists said differences in regulations, consumer habits, infrastructure and technical capacity make localization essential in ASEAN markets.

Industry experts participate in a roundtable discussion at the 2026 Land-Sea Economic Forum in Kuala Lumpur, Malaysia, on July 30, 2026. (Photo/2026 Land-Sea Economic Forum) 

EV growth needs local roots

Tong Yifan, deputy general manager of CAERI (China Automotive Engineering Research Institute) Automotive Technology Co., Ltd, said a functioning EV market requires support from automakers, financial institutions, local suppliers and after-sales service providers.

Although China's entire battery ecosystem may not be reproduced locally, companies can work with Malaysian partners to build a more complete system around vehicle sales, local supply chains and technical training, Tong said.

This matters especially to Chongqing, a major Chinese auto manufacturing hub and home to the CAERI. The city produced 2.788 million vehicles in 2025, including 1.296 million new energy vehicles.

Chongqing’s automotive supply chain provides over 45% of the parts needed by local manufacturers, from chips and power batteries to smart cockpits, according to the municipal government. Vehicles made in the city reach Southeast Asia via the New International Land Sea Trade Corridor, linking western China to global markets by rail and sea.

Liu Yang Sloan, secretary general of the Global Initiatives Implementation Alliance at Sri Lanka’s Prime Minister’s Office, said China’s EV model cannot simply be copied abroad. Customer needs, habits and assessments must be localized, with research and development tailored to each market, Liu added.

Malaysia already has a relatively mature framework governing EV charging facilities, said Nilson Chong, founder and CEO of NICHCOMGO. The country has established guidelines and licensing requirements for charging-station construction that could provide experience for other ASEAN markets.

“The framework is ready, but the timing of obtaining approvals must be right,” Chong said. Projects still require legal and government authorization, which can delay charging facilities.

Regulation is only one hurdle. Tong said a shortage of technical talent is another major constraint on EV investment in ASEAN. Malaysia benefits from a multilingual workforce, but the region still needs more engineers and technicians to support its growing EV market.

Cooperation between companies and universities could help address the shortage, Tong said. Students and engineers from Malaysia and other ASEAN countries could receive technical training in China before returning to work in their domestic markets.

Liu described a similar approach through a talent program that combines talent development with research into customer demand, government policies, and localization requirements.

"Talent cannot be replaced by AI," Liu said. "AI is only an auxiliary tool."

Chong said AI could help smaller companies do more with leaner teams. His company plans to deploy AI agents for routine tasks such as electronic invoicing, regulatory compliance and governance monitoring, freeing employees from repetitive administrative work.

Charging networks shape investment prospects

The discussion also focused on whether Malaysia's charging business could become commercially sustainable.

NICHCOMGO, founded by Chong in 2021, provides EV charging infrastructure and operates the SpacePlus charging app in Malaysia. Chong said its user base grew from about 50 in its first two years to nearly 10,000 today. Malaysia now has roughly 140,000 EVs on the road but only around 6,100 charging points, he added.

The Malaysian government has set a target of 30,000 charging points by 2030, according to Chong. Malaysia also aims for EVs to account for 15% of total vehicle sales by 2030 and 80% by 2050 under its national energy transition plans.

Chong said charging demand would depend partly on changes in consumer behavior. Drivers who previously planned trips around petrol stations increasingly check whether hotels, shopping centers and restaurants provide chargers.

“When I come to a hotel, the first thing I look for is whether it has a charging point,” he said. Drivers could leave a vehicle charging while having coffee or attending a meeting, making charging part of another daily activity.

For Chinese automakers selecting an ASEAN investment destination, Tong said market certification, consumer habits and after-sales capacity must be evaluated together. Malaysia, Thailand, Indonesia and Vietnam apply broadly compatible vehicle regulations, making basic market access less difficult for Chinese manufacturers, he said. However, driving patterns and consumer expectations vary between countries.

Tong said the CAERI was seeking opportunities to invest in local testing organizations that could help Chinese automakers obtain certification and establish local research and development capacity.

Liu said Sri Lanka could also support connections among China, ASEAN, the Middle East and Africa because of its position in the Indian Ocean. However, regional expansion would still require companies to adjust products and business models for each market.