Chinese exports of electric two-wheelers to Southeast Asia increased in the first quarter, as rising fuel prices and shortages linked to the Middle East conflict led consumers to consider alternative transport options.

This trend reflects the impact of regional energy constraints on the adoption of electric mobility in motorcycle-dominated markets.

In the first three months of the year, the value of Chinese electric two-wheeler exports to Myanmar rose by 617.5% year on year to CNY 64.7 million (US$ 9.47 million). Exports to Laos and Cambodia increased by 25.7% and 34.2%, reaching CNY 43.5 million and CNY 38.2 million, respectively.

The increase in Myanmar is linked to constrained fuel supplies. On March 7th, the government introduced an odd-even licence plate rationing system for private cars and petrol-powered motorcycles, while exempting electric vehicles. A newly appointed local dealer purchased vehicles and sold them within a short period, according to an executive at a Chinese electric two-wheeler manufacturer, speaking to media sources on April 19th during the Canton Fair.

Similar demand trends have been observed in Laos and Cambodia. In Laos, the government reduced its fuel consumption tax on March 18th and announced on March 20th that universities nationwide would limit classes to three days per week in response to rising fuel costs. In Cambodia, prices for petrol, diesel, and liquefied petroleum gas increased by 41.5%, 84%, and 60%, respectively, following the onset of the Middle East conflict, according to a local daily on March 26th.

An executive at another Chinese manufacturer stated that the company expanded its dealership network in Laos and Cambodia during the first quarter. Industry sources indicated that the actual scale of exports may be higher than official customs data suggest, as several Chinese companies export knocked-down kits for local assembly to utilise tax incentives.

While the fuel crisis has supported short-term demand, the long-term outlook for electric two-wheelers across much of the region remains uncertain.

A research report dated March 24th by a research firm indicated that motorcycle sales across nine Southeast Asian countries in 2025 remained substantial, although the share of electric models remained limited. Electric motorcycle penetration reached approximately 10% in Vietnam in 2023, while remaining in the single digits in Indonesia, Thailand, Malaysia, and the Philippines.

A key constraint relates to product technology, according to an executive at a Chinese electric two-wheeler manufacturer. Lead-acid battery models are less expensive than petrol motorcycles but offer limited range and lower durability. In contrast, lithium-ion models provide improved performance but remain relatively costly for large-scale adoption.

Among Southeast Asian countries, Vietnam has a defined policy framework for electrification. The government issued an action plan in July 2022 targeting the full electrification of transport vehicles by 2050. In Hanoi, which has a large number of petrol-powered motorcycles, the municipal council passed a resolution on November 26th, 2025, to pilot a low-emission zone within Ring Road 1 starting in July 2026. The zone is expected to restrict petrol motorcycles by time and area as part of a phased transition.

Chinese manufacturers are expanding their local production presence. Yadea Group Holdings identified Southeast Asia as a strategic priority in its 2025 annual report. The company established a production facility in Bac Giang province, Vietnam, in 2019, and formally launched another plant in Bac Ninh province in early 2026. However, overseas revenue accounted for less than 10% of its total revenue in 2025.

Rival manufacturer Tailg Group established a plant in Hung Yen province in August 2024.