Investment in Asia-Pacific’s automotive manufacturing sector is increasingly shifting towards electric vehicle (EV) supply chains, battery technologies and component production, rather than vehicle assembly, as manufacturers strengthen local production capabilities and position themselves for the transition to next-generation mobility, BMI Country Risk and Industry Research said on last Friday.
The region recorded 30 new automotive manufacturing projects with disclosed investment values totaling $36 billion in the third quarter of 2026, compared with 25 projects worth $9.1 billion in the previous quarter, the research house said in its latest investment roundup.
However, the latest investment figure was heavily skewed by Hyundai Motor Group’s KRW42 trillion ($27.5 billion) domestic investment program in South Korea, which accounted for about 76 percent of the disclosed total. Excluding this commitment, investment amounted to approximately $8.5 billion.
The EV supply chain dominated activity, accounting for 17 of the 30 projects, while automotive components represented another 11. Only two projects involved EV assembly, with no new conventional passenger vehicle or motorcycle manufacturing plants recorded during the quarter.
The investment pattern points to a growing emphasis on localising battery production, securing access to critical materials and developing component ecosystems around existing and planned vehicle manufacturing hubs.
China moves towards solid-state battery industrialization
China recorded eight automotive investment projects during the quarter, all within the EV supply chain, with disclosed values totaling $5.7 billion.
Solid-state battery technology was a major focus, featuring in six of the eight projects across cell manufacturing, battery packs, materials and production lines. The developments suggest Chinese manufacturers are moving beyond laboratory research towards pilot and early-stage commercial production.
Docters (Tianjin) New Energy Technology commenced production at a gigawatt-hour-scale all-solid-state battery line producing cells with an energy density of 350 watt-hours per kilogramme. Saike Power also began construction of a 0.1GWh sulphide-based all-solid-state battery pilot line in Yibin.
Investment is also extending upstream into battery materials. Gotion High-Tech is developing a 20,000-tonne-a-year solid-state battery materials facility in Anqing, including high-purity lithium sulphide production, while Shandong Chuanglu Advanced Battery Technology commissioned a solid-state electrolyte production line in Jinan.
Beijing WeLion also broke ground on a 3GWh solid-state battery pack facility in Gansu, linked to an electric heavy-truck logistics park.
Nevertheless, conventional battery technologies continue to attract substantially larger investments. Sunwoda’s CNY40 billion ($5.6 billion) Phase III expansion in Zaozhuang will add 120GWh of capacity across 12 production lines, of which only two will be dedicated to solid-state batteries.
BMI expects solid-state batteries to remain at the pilot and early commercial stages in the near term. However, the range of investments across cells, materials and packs indicates that Chinese companies are positioning themselves to lead the technology’s eventual commercial scale-up.
India’s investment shifts towards supplier localization
India recorded eight automotive manufacturing projects worth $252 million in the third quarter, all involving components, marking a shift towards supplier-led localization following major vehicle assembly commitments in the previous quarter.
This compares with $5.4 billion in investment in the second quarter, which was boosted by Toyota Kirloskar Motor’s $4.5 billion sport utility vehicle (SUV) manufacturing projects.
Uno Minda accounted for four projects worth approximately $110 million, covering a greenfield seating systems facility with Japan’s Tachi-S in Chhatrapati Sambhajinagar, an aluminium casting plant in Hosur for structural and EV powertrain components, alloy-wheel capacity consolidation in Kharkhoda and a moulding expansion in Bengaluru.
Forvia also announced a EUR70 million ($82 million) expansion across three Indian locations, covering clean mobility, lighting and seating, with completion targeted for 2031.
Maharashtra is emerging as an important automotive supplier cluster, with Toyoda Gosei’s $60 million plant in the Bidkin Industrial Area set to produce bumpers, instrument panels, airbags and steering wheels.
The facility will complement Toyota Kirloskar Motor’s planned SUV manufacturing operations, while Uno Minda’s joint venture with Tachi-S adds to earlier investments by JSW Motors and Uno Minda in Chhatrapati Sambhajinagar.
BMI said the developments point to a tier-one supplier base forming around new vehicle manufacturing capacity, supporting higher local content for both domestic sales and exports.
ASEAN broadens battery localization
Across ASEAN, five projects with disclosed investment of approximately $2.6 billion were recorded in the third quarter, led by Thailand’s continued expansion of its EV manufacturing and battery supply chains.
BYD plans to invest THB42 billion ($1.2 billion) in a second battery cell and pack assembly line at its Rayong facility, raising production towards 300,000 battery packs annually.
Great Wall Motor will also invest THB31 billion ($885 million) in additional stamping and body-welding capacity at its Rayong plant to increase local component production.
The investments are aligned with Thailand’s EV3.0 and EV3.5 localization requirements and reinforce Rayong’s position as a regional EV manufacturing hub.
Elsewhere in ASEAN, investment is increasingly reflecting individual markets’ resource advantages and industrial policies.
In Indonesia, Pure Battery Technologies’ proposed $350 million facility would become the country’s first precursor cathode active material (pCAM) plant. The facility will process domestically produced mixed hydroxide precipitate into battery precursor materials, extending Indonesia’s nickel down streaming strategy further along the EV battery value chain.
In Vietnam, Kim Long Motor Hue and BYD Battery have commenced production at the first phase of a $135 million lithium iron phosphate battery facility, with annual capacity of 3GWh. The second phase is expected to increase capacity to 6GWh and extend production to passenger vehicle batteries.
Malaysia has also entered the emerging battery technology segment, with Gigafactory Malaysia and NanoMalaysia launching a small-scale graphene-enhanced nickel manganese cobalt battery cell pilot facility in Sepang.
Battery supply chains extend beyond established hubs
Investment in other Asia-Pacific markets is also expanding beyond vehicle manufacturing towards battery materials, energy storage and technology development.
In Australia, Magellan Power is expanding its Western Australian operations to manufacture industrial batteries, energy storage systems and EV infrastructure equipment.
In New Zealand, CarbonScape has partnered with CATL and Lochpine Capital to scale up production of biographite made from forestry residues. The company aims to move from pilot operations to commercial battery anode material production by 2030, offering an alternative to mined and synthetic graphite.
Japan’s Panasonic Energy has opened a battery development and prototyping facility in Osaka, focusing on advanced materials, cell design and next-generation lithium-ion manufacturing processes.
Meanwhile, Chinese automotive manufacturers are extending their production footprint into newer South Asian markets. In Bangladesh, Runner Automobiles is expanding its existing factory and installing new machinery to manufacture BYD electric vehicles locally.
Supply-chain development becomes a regional investment priority
Overall, the third-quarter investment pattern highlights a broader shift in Asia-Pacific’s automotive industry, with manufacturers placing greater emphasis on battery production, critical materials and component localization.
While vehicle assembly remains important, the concentration of new projects in the EV supply chain suggests that companies are increasingly seeking to secure more stages of production within regional markets.
China’s push into solid-state batteries, India’s development of supplier clusters and ASEAN’s expansion of battery manufacturing and materials processing illustrate how investment strategies are becoming more specialized across the region.
For manufacturers, these developments could strengthen supply-chain integration, reduce reliance on imported components and support the development of regional production hubs serving both domestic and export markets.
ASEAN emerges as key market, manufacturing hub for EVs – BMI