Summary of "Session1 - Next Generation Vehicle -"

This session focused on the future direction, challenges, and collaboration opportunities for the ASEAN automotive industry in the context of achieving carbon neutrality and advancing next-generation vehicle technologies. The discussion involved key stakeholders from Japan and ASEAN countries, highlighting technological trends, market dynamics, policy frameworks, and industry cooperation.

Key Technological Concepts and Industry Trends

Carbon Neutrality & Decarbonization: The ASEAN automotive sector aims to balance competitiveness with decarbonization. While battery electric vehicles (BEVs) are advancing globally, ASEAN’s transition is expected to emphasize Hybrid Electric Vehicles (HEVs), biofuels, and e-fuels alongside gradual BEV adoption, considering the region’s energy mix and infrastructure readiness.
Multiple Pathways Approach: Japan Automobile Manufacturers Association (JAMA) promotes a multi-pathway strategy for carbon neutrality, including BEVs, plug-in hybrids (PHEVs), fuel cell vehicles (FCVs) powered by hydrogen, and internal combustion engines (ICE) using carbon-neutral fuels. This flexible approach reflects diverse regional conditions and avoids reliance on a single technology.
Supply Chain and Local Industry Development: Strengthening local supply chains in ASEAN is critical. There is a need for policies that encourage localization of EV parts manufacturing and innovation by suppliers rather than just importing technology. Japan’s experience with supplier development and “Kaizen” expert dispatch programs is seen as a valuable model.
Export Hub Role of ASEAN: ASEAN countries like Thailand serve as production and export hubs, supplying vehicles to markets in the Middle East, Australia, North America, and Africa. Export strategies should consider the regulatory and market trends of destination countries, especially their electrification targets.
Connected, Autonomous, Shared, and Electrified (CASE) Technologies: Beyond electrification, ASEAN should focus on integrated mobility systems including connected vehicles, autonomous driving, shared mobility, and intelligent transport systems (ITS). Urban congestion and mobility needs require system-level innovation, such as Mobility as a Service (MaaS).
Human Resource and Technology Transfer: Continuous training, technology transfer, and collaboration between Japanese and ASEAN industries are vital to develop skills and sustain innovation in next-generation vehicle technologies.

Product Features and Industry Insights

ASEAN Market Specifics: The region features diverse economic and cultural conditions, with income gaps and varying infrastructure levels influencing vehicle preferences. Affordable mobility remains a priority alongside environmental goals.
Malaysian Automotive Industry Example: PRODA, a Malaysian OEM with Japanese partnership, produces affordable vehicles targeting local consumers and ride-sharing drivers, demonstrating a blend of market responsiveness and technology adoption.
Battery Recycling and Circular Economy: Battery lifecycle management, including recycling and reuse, is essential to address raw material constraints (e.g., nickel). Japan’s expertise in battery recycling is a potential support area for ASEAN.
Policy and Incentive Frameworks: Governments need to develop coherent regulations and incentives that promote local production, technology development, and sustainable vehicle use, including vehicle inspection systems and driving cycle standards tailored to ASEAN conditions.

Reviews, Guides, and Tutorials Provided

Master Plan for ASEAN-Japan Next Generation Automotive Industry: A comprehensive guideline is being developed to assist policymakers, industry players, and stakeholders in aligning competitiveness and decarbonization goals, targeting completion by mid-2024.
Kaizen Expert Dispatch Program: Japanese OEMs dispatch retired experts to ASEAN suppliers to improve quality, cost, and delivery, fostering local supplier development.
Battery Passport System (Malaysia): A regulatory approach ensuring OEM responsibility for battery lifecycle from sales to recycling.

Main Speakers / Sources

Moderator: Mr. Hotaka, Partner and Head of Automotive and Manufacturing Practice in Southeast Asia (Japanese manufacturing companies in India and SEA).
Panelists:
- Mr. Aloes Joo (Joko), Vice President, Economic Research Institute for ASEAN and East Asia (ERIA)
- Mr. Pia, Vice President, Thai Auto Parts Manufacturers Association (TMA)
- Mr. Z Abidin Ahmed, Director General, PRODA (Malaysia)
- Mr. Zoka, Representative, Japan Automobile Manufacturers Association (JAMA)

Conclusion

The session underscored the importance of a diversified technology approach, regional cooperation, and the role of Japan-ASEAN collaboration in advancing the next generation of vehicles. It emphasized balancing environmental goals with economic realities and local market needs, while leveraging Japan’s expertise in technology transfer, supplier development, and regulatory frameworks. The future of ASEAN’s automotive industry lies in integrated strategies combining electrification, connected mobility, and sustainable supply chains.