Jakarta, 3 July 2025: ERIA convened a workshop at its annex office to review and refine the Masterplan for ASEAN–Japan Next Generation Automotive Industry. Attended by 15 participants in person and more than 90 online, the event brought together government officials, multilateral organisations, academia, and business associations to collect final feedback ahead of the plan’s submission in September 2025.

Opening the session, ERIA Chief of Staff Mr Yuta Okuyama emphasised the urgency of strengthening ASEAN’s automotive sector amid major global disruptions. He identified three main forces shaping the industry: geo-economic shifts, the push for decarbonisation, and accelerating digitalisation. Mr Okuyama encouraged regional collaboration to ensure ASEAN's competitiveness and called on attendees to offer practical feedback before the masterplan is submitted at the ASEAN Economic Ministers–METI Consultation in Malaysia.

Dr Alloysius Joko Purwanto, ERIA Energy Economist and lead of the working group, presented updates to the masterplan. He explained that the study offers a roadmap to help policymakers and industry players transition towards a greener, more resilient automotive future. The study analyses three scenarios for 2035: business-as-usual, targeted development, and an envisioned ‘to-be’ future state, allowing stakeholders to assess gaps and root causes in the current trajectory.

A major finding of the report is that ASEAN may see a slower uptake of Battery Electric Vehicles (BEVs) and Plug-In Hybrid Electric Vehicles (PHEVs) compared to global trends. Instead, Hybrid Electric Vehicles (HEVs) are projected to see greater market penetration in the near term, while internal combustion engine (ICE) vehicles will likely retain a dominant share. Given this reality, the masterplan advocates for a ’varied pathway’ approach – one that allows ICE manufacturing to continue while simultaneously building up the xEV ecosystem. Post-2035, a phased transition to low-emission vehicle technologies will be essential.

Mr Naoya Shimohigashi from Deloitte Consulting Viet Nam, a key contributor to the study, shared further insights on the envisioned future state of the regional automotive industry. He noted ASEAN’s potential to remain a strong exporter of ICE and HEV vehicles, expand its role in the global xEV supply chain, and pioneer service-based automotive models tailored to domestic and export markets.

To support this, the study proposes a tiered strategy, categorising ASEAN countries into four groups based on their readiness and capabilities. This framework enables each country to take on roles aligned with national contexts, ensuring inclusive industrial growth across the region.

During the Q&A session, participants explored a range of issues, including the modelling assumptions used in the study, the pace of xEV technology adoption, the viability of alternative fuels such as hydrogen and biofuels, and the role of data sharing in industry collaboration. Several attendees also raised questions about secondhand vehicle markets, country-specific implementation strategies, and the use of carbon credits to support sustainability goals.

In his closing remarks, Dr Purwanto thanked participants for their valuable input and encouraged further engagement. He reiterated ERIA’s openness to continued feedback before finalising the study for submission to the AEM–METI meeting and publication by the end of the year.

The workshop reaffirmed the region’s shared commitment to transitioning towards a sustainable, competitive automotive industry. The Masterplan for ASEAN–Japan Next Generation Automotive Industry is expected to serve as a blueprint for coordinated action, aligning ASEAN’s diverse economies with global trends while recognising their unique pathways to industrial transformation.