ASEAN Electric Two-Wheeler Market – Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle (Scooter/Mopeds, Motorcycle), By Range (Less than 50Km, 50-100Km, 101-150Km, Above 150Km), By Battery Capacity (<25Ah, >25Ah), By Battery (Lead Acid, Li-ion), By Country, By Competition, 2020-2030F

Market Overview

The ASEAN Electric Two-Wheeler Market was valued at USD 1077.80 million in 2024 and is expected to reach USD 2232.04 million by 2030 with a CAGR of 12.90% during the forecast period.

The ASEAN electric two-wheeler market is undergoing a transformative shift as consumer preferences evolve toward cleaner and more cost-effective transportation alternatives. Rapid urbanization and dense traffic in metropolitan areas have amplified the demand for electric scooters and motorcycles. Governments across Southeast Asia are reinforcing the transition through regulatory support, including purchase subsidies, import duty reductions, and tax incentives. Technological developments in battery performance, range, and charging infrastructure further strengthen the ecosystem necessary for mass EV adoption. Rising awareness about the environmental impact of fossil fuel vehicles is also driving consumers to explore electric options.

The surge in investments and collaborations across the value chain—from local manufacturing and battery production to service networks—indicates a maturing market landscape. Fleet operators, particularly in last-mile delivery and ride-hailing sectors, are increasingly turning to electric two-wheelers to reduce operational costs. The market is also benefiting from innovations such as battery swapping stations, mobile charging units, and digital apps offering real-time diagnostics and performance monitoring. These developments collectively improve the user experience and accelerate market penetration.

Despite the positive momentum, several challenges continue to impact market expansion. High upfront vehicle costs, limited charging infrastructure, and inadequate consumer awareness restrict potential adoption in certain areas. Reliability concerns related to battery lifespan and performance in tropical climates are additional hurdles. Market players must also contend with fragmented regulatory environments and policy inconsistencies across the region. Addressing these issues through coordinated policymaking and infrastructure investment will be critical in ensuring sustained growth through 2030.

Market Drivers

Rising Urban Congestion

As cities across Southeast Asia experience rapid population growth and urbanization, road congestion has become a major concern. Traditional motorcycles, although popular, contribute to traffic density and pollution. According to the ASEAN Automotive Federation, total motorcycle and scooter sales across ASEAN countries reached 9.5 millin units in the January to September 2024 period, reflecting a year-on-year increase of 0.9% compared to 9.4 million units during the same period in 2023. Electric two-wheelers offer a practical solution due to their compact design and suitability for short urban commutes. Governments and urban planners are now integrating electric mobility into public transportation strategies to reduce vehicular load and emissions. For instance, As reported by the Indonesia Ministry of Industry in March 2025, the country aims to deploy 2 million electric motorcycles by 2026, supported by incentives and partnerships with battery-swapping networks and local manufacturers. Riders benefit from quieter operation, lower maintenance, and easy navigation in congested streets, making electric vehicles a logical alternative. The adaptability of e-scooters and electric motorcycles to crowded city conditions makes them especially appealing to daily commuters and delivery personnel, who need quick, efficient, and cost-effective mobility. With continuous urban infrastructure development and smart city initiatives in progress, electric two-wheelers are positioned as critical tools in future urban transport ecosystems. These factors create a strong case for the growth of e-two-wheelers as congestion solutions in Southeast Asia.

Fuel Price Volatility

Frequent fluctuations in fuel prices have a direct impact on commuting costs for two-wheeler users in Southeast Asia. The region's high dependency on petroleum-based mobility exposes consumers to the financial burden of fuel price hikes. Electric two-wheelers offer a predictable and significantly lower cost of ownership due to lower energy prices and minimal mechanical maintenance. Daily commuters, delivery riders, and small businesses, who form the majority of two-wheeler users, are increasingly recognizing this economic advantage. With the long-term savings in mind, consumers are shifting preference toward battery-powered alternatives. This shift is further supported by various policy measures, such as electricity subsidies or free charging pilot programs, introduced by governments to shield users from fuel market volatility. For instance, Vietnam’s Ministry of Transport stated in its 2024 EV strategy that electric two-wheelers account for over 10% of all two-wheelers in circulation, driven by a ban on fossil-fuel-powered motorcycles in Hanoi by 2030 amid growing urban air quality concerns. As awareness spreads and charging access improves, the economic incentives of electric mobility will continue to attract users seeking stable, long-term solutions for affordable transportation.

Policy Incentives and Subsidies

Government-led initiatives promoting electric mobility are vital accelerators of market growth across the ASEAN region. Measures such as tax exemptions, vehicle registration discounts, free charging schemes, and subsidies on locally manufactured EVs make electric two-wheelers financially accessible to a wider population. For instance, The Thailand Board of Investment (BOI) reported in December 2024 that the country approved investment applications for over 1.2 million electric motorcycle units in manufacturing capacity, backed by tax holidays and subsidies for battery and vehicle production. Also, Malaysia’s Ministry of International Trade and Industry (MITI) announced in 2025 that its Low Carbon Mobility Blueprint targets 15% EV adoption in two-wheeler sales by 2030, with a key focus on affordability and local vendor development.

Some governments have also mandated electrification targets for ride-hailing and delivery fleets, creating institutional demand. Import duty exemptions on electric vehicle components encourage domestic assembly and reduce end-user prices. These incentives are complemented by long-term policy roadmaps focused on decarbonization and net-zero targets. As policymakers align national strategies with climate goals, electric mobility becomes a cornerstone of transportation planning. The assurance of consistent policy support reduces investor uncertainty, attracting both local and foreign manufacturers to invest in the region. The combination of economic, regulatory, and environmental incentives makes the market fertile for expansion, especially as awareness and infrastructure continue to evolve.

Growing E-commerce and Delivery Demand

The rise of online commerce has significantly boosted demand for efficient last-mile delivery solutions in Southeast Asia. Electric two-wheelers are increasingly favored by delivery service providers due to their low operational costs, ease of maneuverability, and suitability for high-frequency urban use. As delivery fleets operate on tight schedules and slim margins, switching to electric vehicles offers clear economic and operational benefits. Many logistics platforms are now integrating EVs into their delivery ecosystems, supported by charging hubs located at distribution centers. This trend is further reinforced by corporate sustainability mandates and pressure to reduce carbon footprints. Riders also benefit from quieter vehicles and lower fatigue during long shifts. With e-commerce expected to grow rapidly, especially in tier 2 and tier 3 cities, the demand for affordable, durable, and efficient electric two-wheelers is set to rise, making this segment a major growth contributor.

Advancement in Battery Technology

Battery innovation plays a crucial role in the adoption of electric two-wheelers. Recent advancements have led to extended range, faster charging, and improved durability, addressing key user concerns such as range anxiety and long-term performance. Lithium-ion batteries have become more affordable and reliable, while emerging technologies like solid-state batteries promise even better energy density and safety. These developments have encouraged users to consider EVs as practical alternatives to petrol-driven motorcycles. Fast-charging solutions and modular battery packs further enhance convenience, especially for fleet operators. In some ASEAN cities, battery swapping networks are being introduced to reduce downtime and make refueling comparable to traditional vehicles. 

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Market Challenges

Limited Charging Infrastructure

One of the most pressing challenges limiting the growth of electric two-wheelers in Southeast Asia is the inadequate availability of charging infrastructure. Many urban and semi-urban areas lack reliable public charging stations, making it difficult for users to operate electric vehicles for long distances or routine commuting. The absence of standardized charging connectors, limited fast-charging options, and lack of integration with digital navigation systems further hinder convenience. For fleet operators and individual users alike, this creates uncertainty and range anxiety, especially in areas where charging stations are sparsely located. Building a robust charging network requires significant investment, cross-sector collaboration, and supportive zoning regulations. 

High Initial Purchase Cost

Electric two-wheelers often carry a higher upfront cost compared to their internal combustion engine counterparts. Despite long-term savings through lower fuel and maintenance costs, the initial price remains a barrier for a price-sensitive consumer base in Southeast Asia. Battery systems contribute significantly to the total vehicle cost, and while their prices are gradually declining, they still inflate purchase decisions. In regions with lower average incomes, many consumers rely on installment-based purchasing or informal credit systems, which may not yet support electric vehicle financing. The perceived cost-value gap discourages adoption among first-time or budget-conscious buyers, especially in rural or semi-urban areas. While government subsidies help mitigate some of the price burden, gaps in policy awareness and inconsistent implementation limit their effectiveness. Without wider affordability, mass adoption will be delayed, particularly among segments like delivery riders and small business owners who are vital to market growth.

Battery Disposal and Recycling Challenges

As electric two-wheeler adoption grows, concerns over battery waste management and recycling become more pronounced. Lithium-ion batteries, while efficient, pose environmental and safety risks if improperly disposed of. The ASEAN region currently lacks comprehensive regulations and infrastructure for safe battery collection, recycling, and reuse. Informal recycling practices, which are common in developing economies, often lead to hazardous waste leakage, contaminating soil and water. This undermines the environmental benefits that electric mobility aims to deliver. Manufacturers and governments must work together to establish end-of-life management systems that include producer responsibility, user awareness, and investment in green recycling technologies.

Lack of Consumer Awareness and Trust

A substantial portion of the target consumer base in Southeast Asia remains unaware of the benefits and capabilities of electric two-wheelers. Misconceptions about battery life, vehicle speed, charging time, and long-term durability continue to persist. The absence of clear communication and educational outreach from manufacturers and governments has allowed skepticism to grow, especially among older users accustomed to gasoline-powered bikes. Trial opportunities and experiential marketing are limited, which means many users have never ridden or evaluated an electric two-wheeler firsthand. 

Key Market Trends

Battery Swapping Networks

Battery swapping is emerging as a scalable alternative to conventional plug-in charging, especially in densely populated urban centers. The model allows users to exchange depleted batteries for fully charged ones at designated stations, reducing downtime and eliminating the need for home charging setups. This trend is particularly beneficial for delivery riders and commercial fleets operating on time-sensitive schedules. Battery swapping networks also decouple battery ownership from the vehicle, lowering the upfront cost and enabling flexible subscription-based models. Governments and private operators are collaborating to expand these networks, integrating them into mobility hubs and high-traffic areas. The system addresses range anxiety while promoting efficient energy distribution and battery lifecycle management. With smart tracking and AI integration, operators can monitor usage, battery health, and station performance in real-time. As the model gains traction, it is likely to reshape the electric two-wheeler ecosystem in ASEAN, offering both convenience and operational scalability.

Integration of IoT and Smart Features

Electric two-wheelers are increasingly being equipped with smart features such as GPS tracking, remote diagnostics, anti-theft systems, and ride analytics. The integration of Internet of Things (IoT) technology enhances the user experience by enabling remote monitoring of battery status, vehicle health, and location tracking. These features are especially valuable for fleet operators, allowing for predictive maintenance, usage optimization, and route planning. Users benefit from mobile app interfaces that provide real-time data and service alerts, improving ride safety and operational efficiency. IoT capabilities also help manufacturers and service providers gather insights into user behavior and vehicle performance, enabling continuous product improvement. In urban environments, smart EVs can be integrated into broader mobility platforms, supporting multimodal transport systems and ride-sharing networks. As digital connectivity becomes a norm in vehicle design, consumer expectations for smart, connected, and responsive two-wheelers are pushing the market toward technology-driven innovation.

Expansion of Leasing and Subscription Models

To overcome affordability challenges, leasing and subscription-based ownership models are gaining popularity in the electric two-wheeler market. These flexible payment structures allow users to access vehicles without the burden of full upfront costs, making them attractive to gig workers, students, and small business operators. Monthly rental plans often include maintenance, insurance, and battery support, offering a hassle-free ownership experience. Service providers are customizing plans based on usage patterns, such as daily commuting or commercial delivery. Leasing models are also aligned with the needs of corporations looking to electrify their employee fleets or logistics operations. By reducing financial risk and commitment, subscriptions make electric vehicles more accessible to first-time users and early adopters. As this model scales, supported by digital apps and automated billing systems, it could become a dominant method of vehicle access in urban Southeast Asia, particularly in regions where income levels and credit access are varied.

Local Manufacturing and Assembly Initiatives

Governments and industry players across Southeast Asia are promoting local manufacturing of electric two-wheelers to reduce dependency on imports and strengthen domestic capabilities. Local assembly helps lower vehicle costs by minimizing import duties and improving parts availability. It also creates jobs and builds industrial capacity aligned with the region’s broader economic development goals. Several local startups and traditional manufacturers are investing in EV-specific production lines, battery pack assembly units, and testing facilities. Government incentives and industrial park schemes support the setup of EV manufacturing clusters. Localization also facilitates better customization to local preferences, weather conditions, and road usage patterns. It shortens the time-to-market for new models and improves responsiveness to consumer feedback. As local supply chains mature, they are likely to reduce lead times, increase scalability, and drive price competitiveness, thereby accelerating the mass adoption of electric two-wheelers across ASEAN.

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Segmental Insights

Vehicle Insights

The ASEAN electric two-wheeler market consists mainly of scooters/mopeds and motorcycles, each serving different mobility needs and user preferences. Scooters and mopeds are widely preferred for short-distance commuting due to their lightweight design, automatic transmission, and ease of handling. These vehicles appeal strongly to urban users such as students, daily commuters, and gig workers, who prioritize convenience and fuel savings over speed or engine power. Their compact structure makes them suitable for congested roads, parking constraints, and frequent stop-and-go traffic conditions. The rise of shared mobility platforms has also increased the visibility of electric scooters in city environments. On the other hand, electric motorcycles are being explored by users seeking higher performance, extended range, and robust design suitable for long-distance rides or commercial applications.

These vehicles cater to professional riders in delivery services, logistics, and fleet operations who require durability and consistent performance. Electric motorcycles also attract younger riders interested in sportier aesthetics and higher top speeds. Technological enhancements such as regenerative braking, modular battery packs, and smartphone integration are increasingly found in both vehicle categories, allowing users to monitor performance, range, and service requirements in real time. The distinction between scooters and motorcycles continues to evolve as manufacturers design hybrid models that combine ease of use with enhanced power. Charging infrastructure is being developed with consideration for both types, including battery swapping compatibility and fast-charging options tailored to urban and peri-urban environments. Both vehicle types are playing key roles in supporting last-mile connectivity, especially with the integration of electric mobility into broader public transportation and smart city plans. Consumer education, accessible financing, and product availability in both categories are crucial to shaping long-term adoption trends. While preferences vary by user type and application, the coexistence of scooters and motorcycles ensures a diversified market landscape that meets varied transportation needs across the ASEAN region.

Regional Insights

Indonesia leads the electric two-wheeler market in ASEAN, supported by strong local demand, government support, and a growing network of EV stakeholders. The country’s large population, particularly in urban areas, drives substantial daily commuting needs, making two-wheelers the preferred mode of transport. Rising fuel costs, traffic congestion, and increasing environmental concerns are prompting a shift toward electric alternatives. Public awareness of pollution reduction and sustainable mobility is steadily rising, contributing to the appeal of electric scooters and motorcycles for both personal and commercial use. Incentives offered by the government, such as value-added tax exemptions, import duty relief, and direct purchase subsidies, are helping reduce the cost barrier for consumers.

Thailand is making steady progress in the electric two-wheeler space, driven by government-backed initiatives, increasing consumer interest, and urban transportation needs. Rising concerns about air quality in metropolitan areas and the growing demand for cost-efficient mobility solutions have spurred interest in electric scooters and motorcycles. The government has introduced tax incentives, reduced import duties, and launched pilot programs to encourage electric vehicle adoption among both individual users and fleet operators. Urban commuters are increasingly drawn to electric two-wheelers due to their low operating costs, quiet operation, and suitability for short-distance travel. The rise of food delivery and courier services is further contributing to demand, with electric vehicles offering a cleaner and more economical alternative. Efforts to build charging infrastructure, including pilot battery swapping networks and private charging points, are underway. Thailand’s strategy to become a regional EV manufacturing hub also extends to two-wheelers, attracting investment in local assembly and parts production.

Recent Developments

• In August 2025, TVS Motor announced the launch of its iQube electric scooter in the Philippines, marking its official entry into the Southeast Asian electric two-wheeler market. The scooter features connected tech and a user-friendly interface. The launch aligns with the region’s growing shift toward clean mobility. The company also plans to expand its charging ecosystem in key urban areas.
• In January 2025, Indonesia’s Maka Motors introduced its first locally designed electric motorcycle, the Maka Cavalry. The launch represents a major milestone in domestic EV development and aims to support the government’s push for local manufacturing. The motorcycle targets urban riders and delivery services. It reflects rising interest in homegrown electric mobility solutions.
• In December 2024, Honda revealed plans to develop and export electric motorcycles from its India operations to ASEAN markets. The company emphasized its commitment to electric mobility and affordable innovation. Production is expected to start at its facility with ASEAN as a priority export region. The move supports Honda’s global electrification roadmap.
• In June 2025, Thailand initiated a pilot project to introduce electric motorcycle taxis in select urban zones. The program is supported by the Ministry of Energy and aims to reduce emissions and fuel dependency. Riders are trained on EV handling and charging protocols. The trial will inform future policy and infrastructure planning.
• In May 2025, BTS Group partnered with Winnonie to launch Pinto, an electric motorcycle leasing service along Bangkok’s Skytrain network. The service targets urban commuters seeking clean, flexible transport options. The leasing model includes vehicle, maintenance, and battery management. It aims to integrate with public transit for seamless mobility.

Key Market Players

• Zero Motorcycles Inc.
• Hero Electric Vehicles Pvt. Ltd
• Vmoto Limited
• AIMA Technology Group Co. Ltd
• Dongguan Tailing Electric Vehicle Co. Ltd
• Piaggio & C. SpA
• Ather Energy Pvt. Ltd
• Energica Motor Company
• Honda Motor Co. Ltd
• Gogoro Inc.

Report Scope:

In this report, the ASEAN Electric Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         ASEAN Electric Two-Wheeler Market, By Range:

o    50–100 Km

o    101–150 Km

o    Less than 50 Km

o    Above 150 Km

·         ASEAN Electric Two-Wheeler Market, By Battery Capacity:

o    <25 Ah

o    >25 Ah

·          ASEAN Electric Two-Wheeler Market, By Battery:

o    Lead Acid

o    Li-ion

·         ASEAN Electric Two-Wheeler Market, By Vehicle:

o    Scooter/Mopeds

o    Motorcycle

·         ASEAN Electric Two-Wheeler Market, By Country:

o    Indonesia

o    Vietnam

o    Thailand

o    Malaysia

o    Philippines

o    Rest of ASEAN

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the ASEAN Electric Two-Wheeler Market.

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Company Information

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