With the global automotive market transitioning towards electrification, Southeast Asia has become a new high ground for Chinese and Japanese car companies to compete for. Recently, Japan andASEANThe country plans to jointly develop a joint strategy for automobile production and sales to cope with the strong growth momentum of Chinese car companies in the Southeast Asian market.

According to Nikkei Asia, Japan andASEANThe national plan is toAt the Economic Ministers' Meeting held in September, a 10-year mid-term joint strategic agreement was signed. This agreement will cover multiple aspects such as talent cultivation, decarbonization of production, procurement of mineral resources, and research and development of next-generation energy technologies, aiming to strengthenASEANThe development strength of the country in the field of electric vehicles and its promotion to global consumersASEANThe environmental advantages of manufacturing electric vehicles.

Japanese car manufacturersASEANThe region has a strong foundation, and well-known brands such as Toyota and Honda have important production bases here. Every year, Japanese car companiesASEANThe number of cars assembled in the region exceeds3 million vehicles, accounting for 80% of the total automobile production in the region, many of which are exported to the Middle East and other regions. However, facing the rapid rise of Chinese car companies such as BYD, Japanese car companies feel unprecedented pressure.

Chinese car companies have begun to gain a foothold in the Southeast Asian market with their rapid progress in electric vehicle technology and cost advantages. Especially BYD, its electric vehicle production far exceeds domestic sales and is exporting in large quantities to Europe, Southeast Asia, and other places. In Thailand, the electric vehicle market share of Chinese car companies has reached85% has sparked a wave of investment in China.

In response to the challenges posed by Chinese car companies, the Japanese government has decided to take a series of measures. Firstly, in terms of talent cultivation, the Japanese government will utilizeA 140 billion yen aid from the Ministry of Economy, Trade and Industry will provide digital technology training for employees of factories and component suppliers to enhance the technological level of the local automotive industry.

Secondly, in terms of decarbonization production, Japan will assistASEANThe country is promoting factories to shift towards renewable energy and reduce carbon emissions. In addition, Japan will also collaborate withASEANNational cooperation, joint procurement of rare materials required for electric vehicle batteries, exploration of research in battery recycling and other fields, as well as the development of biofuels made from waste edible oil, to provide support for the research and development of next-generation energy technologies.

In the future, the competition between Chinese and Japanese car companies in the Southeast Asian market will become more intense, and it is still unknown who can stand out in this wave of electrification.