Southeast Asian Two-Wheeler Market Presents Vast Opportunities as High Oil Prices Accelerate Electrification

A research report from Guotai Haitong Securities indicates that accelerating oil price increases are creating cost pressures that will likely drive faster adoption of electric motorcycles and e-bikes over traditional gasoline-powered models in Southeast Asia. Domestic manufacturers with early-mover advantages in production facilities, distribution channels, and brand development stand to benefit. The report recommends YADEA Holdings (01585.HK) and Aima Technology (603529.SH).

The Southeast Asian motorcycle market is substantial, yet electric motorcycle penetration remains low, suggesting significant room for growth. According to Motorcycles Data, total motorcycle sales across the nine ASEAN nations are projected to reach approximately 15 million units by 2025, with electric motorcycles currently accounting for a small share. Looking ahead, the implementation of motorcycle bans in various Southeast Asian regions, improvements in subsidy policies, and the cost-driven incentive from high oil prices are expected to substantially increase electric motorcycle penetration.

Aima Technology has already commenced production at its manufacturing plants in Indonesia and Vietnam. The company possesses research, development, and manufacturing capabilities in key component areas, along with industry-leading expertise in battery system integration and compatibility. For brand promotion, Aima conducts social media content operations on major overseas platforms like Facebook and TikTok and carries out targeted marketing campaigns during peak consumption periods, such as Indonesia's Eid al-Fitr.

On March 1, 2026, the first phase of YADEA's smart manufacturing facility in Bac Ninh Province, Vietnam, was officially completed. This initial phase involved an investment exceeding $100 million and has an annual designed production capacity of 1 million units. Concurrently, the company launched its flagship electric motorcycle model for the Vietnamese market, the YADEA Osta. YADEA also entered into a strategic cooperation agreement with Grab Vietnam to jointly promote the adoption of electric motorcycles in the ride-hailing sector.