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Hadi Azmi

Southeast Asia’s electric vehicle market is primed for rapid expansion, but the lack of a unified legal framework and fragmented regulations could undermine its EV ambitions, Xpeng president Brian Gu has warned.
Speaking at the South China Morning Post’s China Conference: Southeast Asia 2025 on Monday, Gu acknowledged the region’s immense potential but cautioned that inconsistent policies on manufacturing incentives and emerging technologies could discourage investment.
“Asean’s EV growth rate is actually among the highest globally. That is very exciting,” said the head of Xpeng, a leading Chinese EV maker. “[However], regulatory fragmentation is one of the biggest challenges.”
Gu, speaking on a panel about Southeast Asia’s ambitions to become an EV hub, pointed out that the lack of a clear legal framework for advanced EV technologies was making it difficult for manufacturers to introduce new models in the region.
He said this was in contrast to China, where the EV boom has led to policies specifically tailored to the sector.

Founded in 2014, Xpeng has positioned itself as a smart EV company, launching its AI Chauffeur autonomous driving system last year. However, the technology is currently only available in China due to regulatory limitations elsewhere.
Gu cited Level 3 autonomous driving – which allows drivers to take their hands and eyes off the wheel under certain conditions – as an example of regulation, rather than technology, being the main roadblock.
“We can already do it,” he said.
With a population nearing 700 million and the world’s fifth-largest economy, the 10-member Association of Southeast Asian Nations (Asean) is home to the world’s sixth-largest automotive market and growing.
Thailand leads as the region’s biggest carmaker, while Malaysia and Vietnam have developed their own homegrown auto industries.
The EV sector, in particular, is booming. Sales are surging across the region, with the market projected to quadruple in size from US$1.5 billion in 2025 to more than US$6 billion by 2030.
On Asean’s collective goal to establish itself as an EV hub, Gu emphasised the region’s diverse strengths. He highlighted mining capabilities as being essential for battery production as well as Malaysia’s hi-tech manufacturing sector.
“Both from a design perspective and later-stage development, Malaysia has a strong presence,” he said, adding that semiconductors were key to smart mobility.
“Leveraging Malaysia’s expertise in semiconductors to drive innovation in Asean, and specifically Malaysia, would be highly beneficial,” Gu said.
The one-day conference in the Malaysian capital, organised by the South China Morning Post, saw Southeast Asia similarly praised by other speakers. Ronnie Lim, group CEO of subsea cable infrastructure provider OMS Group, called it one of the most dynamic and high-potential markets in the world.
He said this dynamism is driven by Asean’s strategic location between China and India, its position straddling the Indian and Pacific Oceans, its diverse and growing population, and its rapid adoption of digital technologies.

This includes the rise of 5G networking, AI-driven economies and major investments in cloud computing from Microsoft, Google, Amazon and Nvidia.
“We have one of the youngest and most tech-savvy populations globally, and this presents a huge opportunity for services,” Lim said.
However, Daniel Ren, SCMP’s Shanghai bureau chief, voiced concerns that Asean’s EV ambitions might hit the same wall experienced by Chinese manufacturers.
“The US and the EU have already criticised China and Chinese EV makers for exporting at a scale that they claim is excessive for their markets,” Ren said.
“If they are saying there’s already an oversupply, what does that mean for Asean’s development?”


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Southeast Asia’s EV ambitions face ‘regulatory fragmentation’ roadblock: Xpeng president

Brian Gu, vice chairman and president of Xpeng, during a panel discussion at SCMP’s China Conference: Southeast Asia in Kuala Lumpur, Malaysia, on February 17. Photo: Nora Tam

Workers make the final checks on cars coming off the assembling line at an Xpeng plant in Zhaoqing in Southeast China. Photo: Xinhua

Brian Gu, vice chairman and president, Xpeng sitting next to Daniel Ren, Shanghai bureau chief at the South China Morning Post; at a panel discussion during SCMP’s China Conference: Southeast Asia on February 17. Photo: Nora Tam

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Thitinan Pongsudhirak, a professor of international relations and senior fellow with the Institute of Security and International Studies at Chulalongkorn University, at the “China Conference: Southeast Asia 2025” in Kuala Lumpur, Malaysia on Monday. Photo: Nora Tam

US President Donald Trump holds a signed executive order on tariffs on aluminium imports in the Oval Office of the White House in Washington on February 10. Photo: Reuters

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The head of Chinese EV maker Xpeng says a lack of unified legal frameworks around tech like autonomous driving could discourage investment


The head of Chinese EV maker Xpeng says a lack of unified legal frameworks around tech like autonomous driving could discourage investment.


Southeast Asia’s EV ambitions face ‘regulatory fragmentation’ roadblock: Xpeng president

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The head of Chinese EV maker Xpeng says a lack of unified legal frameworks around tech like autonomous driving could discourage investment

The head of Chinese EV maker Xpeng says a lack of unified legal frameworks around tech like autonomous driving could discourage investment