(MENAFN- GlobeNewsWire - Nasdaq) E-axle systems are vital for transitioning to electric mobility, particularly in dense urban markets like Indonesia, Vietnam, and Thailand. While challenges such as high upfront costs and fragmented supply chains persist, government incentives and the need for low-maintenance solutions are spurring growth. Key players like VinFast and Oyika are adopting modular strategies to enhance local assembly and sustainability. The integration of battery-swapping and smart connectivity features highlights evolving consumer and fleet expectations. Strategic public-private partnerships and local manufacturing initiatives are poised to accelerate the market's expansion.Dublin, Oct. 15, 2025 (GLOBE NEWSWIRE) -- The "South-East Asia Two-wheeler e-Axle Market by Country (India, China, Vietnam, Indonesia, Malaysia, Philippines)" has been added to ResearchAndMarkets's offering.
The South-East Asia e-axle market for electric two-wheelers is projected to expand from USD 227 million in 2025 to USD 584 million by 2032.
This growth is fueled by the increased adoption of e-axle systems by manufacturers, becoming a pivotal element in the region's shift to electric mobility. While traditional ICE motorcycles remain prevalent, the integration of efficient e-axle systems is gaining traction, particularly in urban delivery fleets and personal mobility sectors.
Local governments' incentives and emission mandates are spurring initial adoption, although challenges such as high upfront costs, fragmented supply chains, and the absence of uniform standards across ASEAN markets persist. OEMs face decisions on balancing localization with cost, performance, and design flexibility. Nevertheless, innovations in low-voltage e-axle platforms and integrated motor-gearbox-controller designs are anticipated to accelerate near-to-mid-term adoption.
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Opportunities and Industry Trends
The rise in electric two-wheeler adoption and investments in charging infrastructure across South-East Asia opens opportunities for OEMs to incorporate e-axle systems, especially in high-density markets like Indonesia, Vietnam, Thailand, India, and the Philippines. The shift from ICE to electric makes e-axle integration a vital strategy, simplifying drivetrain architecture and enhancing vehicle efficiency.
Price sensitivity and limited service networks pose barriers, yet consumers in the USD 1,200-1,500 range prioritize product durability, component standardization, and maintenance ease. Key players like VinFast, Viar, NIU, and newcomers such as Oyika, HORIZON+, and iMotorbike are adopting modular strategies tailored to local conditions. Initiatives like Battery-as-a-Service, led by Oyika, address infrastructure bottlenecks by reducing dependency on fixed charging networks.
Connected vehicle technologies, including GPS tracking and remote diagnostics, support commercial applications such as last-mile delivery and shared mobility. These developments reflect shifting expectations where essential electric mobility is insufficient; OEMs must offer integrated, low-maintenance, and service-ready solutions. The future growth of e-axle adoption hinges on manufacturers aligning product design with local conditions, cost constraints, and infrastructure readiness.
Growth Drivers
Fleet electrification in delivery and ride-hailing sectors presents a significant growth area as these segments demand robust, low-maintenance vehicles. Oyika is leading battery-swapping infrastructure expansion, alleviating range anxiety and enhancing operational uptime. Modular e-axle platforms for local assembly gain traction as OEMs aim to lower costs and simplify maintenance. Integrating smart connectivity features adds value for fleet managers and consumers.
Financing models like leasing and subscription services make e-axle-based electric scooters accessible in cost-sensitive markets. Government incentives and localization mandates in India, Indonesia, Vietnam, and Thailand promote domestic e-axle production. The retrofit market for converting ICE two-wheelers to electric shows early potential. Public-private partnerships focused on battery standards, swapping protocols, and service coverage can further boost adoption.
Strategic Developments
South-East Asia is emerging as a strategic region for the electric two-wheeler e-axle market, backed by electrification policies and urban mobility needs. India's Ola Electric commenced in-house e-axle production in April 2024, while JK Fenner and Korea's NMC Motors collaborate on localized manufacturing. Vietnam's VinFast expanded its production capabilities, and Indonesia's Volta established a drivetrain assembly unit to meet electric motorcycle targets by 2025.
Major market players include Musashi Seimitsu Industry Co., Toyota Tsusho Corporation, Rotontek, and JK Fenner. OEMs such as Gesits, Viar, Selex Motors, Dat Bike, and Ni Hsin EV Tech are focusing on market share gains through e-axle integration.
Research Insights
An analysis of key drivers, challenges, and technology trends in the South-East Asia two-wheeler market is provided. The report includes a competitive assessment of major OEM offerings and strategic developments, along with insights into market dynamics, including stringent regulations and local manufacturing policies. Detailed insights into ongoing technologies and R&D activities are covered to aid stakeholders in understanding current and future market trends.
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