South-East Asia e-axle market for electric two-wheelers is expected to reach USD 584 million by 2032, from USD 227 million in 2025, driven by increased adoption of e-axle by manufacturers.
The e-axle is emerging as a critical enabler in the transition to electric mobility across South-East Asia's two-wheeler segment. While traditional ICE two-wheelers and basic electric scooters dominate the region today, the integration of compact, efficient, and cost-competitive e-axle systems is gaining momentum - especially in urban delivery fleets and personal mobility.
Initial adoption is largely driven by local governments promoting cleaner transport modes through incentives and emissions mandates. However, barriers persist in terms of high upfront costs, fragmented supply chains for power electronics, and a lack of uniform standards across ASEAN markets. Moreover, many OEMs face a strategic dilemma balancing localization with cost, performance, and vehicle form-factor flexibility. Despite these frictions, the proliferation of low-voltage e-axle platforms and innovations in integrated motor-gearbox-controller designs are expected to accelerate adoption in the near-to-mid term.
While price sensitivity and limited service networks remain key barriers, consumers in the USD 1,200-1,500 range are placing greater importance on product durability, component standardization, and ease of maintenance. Key players such as VinFast, Viar, and NIU, along with emerging companies like Oyika, HORIZON+, and iMotorbike, are adopting modular platform strategies tailored for local assembly and servicing. Additionally, the rise of Battery-as-a-Service and battery-swapping models - led by operators such as Oyika is helping address infrastructure bottlenecks by offering faster turnaround and reduced dependency on fixed charging networks.
At the same time, connected vehicle technologies such as GPS tracking, remote diagnostics, and anti-theft systems are being embedded to support commercial use cases, including last-mile delivery and shared mobility. These trends indicate a shift in consumer and fleet expectations, where basic electric mobility is no longer sufficient; OEMs are now expected to offer integrated, low-maintenance, and service-ready solutions. The future growth of e-axle adoption will depend on how well manufacturers align product design with local usage conditions, cost constraints, and infrastructure readiness.
The integration of smart connectivity features such as GPS, diagnostics, and theft alerts is creating added value for fleet managers and consumers. Financing models such as vehicle leasing and subscription services are also making e-axle-based electric scooters more accessible in price-sensitive segments. Government incentives and localization mandates in markets like India, Indonesia, Vietnam, and Thailand are encouraging domestic production of e-axle systems and components. Additionally, the retrofit market for converting ICE two-wheelers to electric using e-axle kits is showing early potential. Strategic public-private partnerships aimed at improving battery standards, swapping protocols, and service coverage can further accelerate adoption. OEMs that align their e-axle product strategies with these trends will be well-positioned to capture market share.
In January 2024, Vietnam’s VinFast expanded its electric two-wheeler production by vertically integrating drivetrain components such as motors and gearboxes for both domestic and export use. In November 2023, Indonesia’s Volta announced the establishment of a drivetrain assembly unit in Semarang to support its growing EV lineup, aligning with the government’s target of 2 million electric motorcycles by 2025. Collectively, these developments demonstrate how India, Vietnam, and Indonesia are driving South-East Asia’s rise as a critical hub for compact, localized, and scalable E2W e-axle solutions.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
The e-axle is emerging as a critical enabler in the transition to electric mobility across South-East Asia's two-wheeler segment. While traditional ICE two-wheelers and basic electric scooters dominate the region today, the integration of compact, efficient, and cost-competitive e-axle systems is gaining momentum - especially in urban delivery fleets and personal mobility.
Initial adoption is largely driven by local governments promoting cleaner transport modes through incentives and emissions mandates. However, barriers persist in terms of high upfront costs, fragmented supply chains for power electronics, and a lack of uniform standards across ASEAN markets. Moreover, many OEMs face a strategic dilemma balancing localization with cost, performance, and vehicle form-factor flexibility. Despite these frictions, the proliferation of low-voltage e-axle platforms and innovations in integrated motor-gearbox-controller designs are expected to accelerate adoption in the near-to-mid term.
Positive consumer confidence across South-East Asia to open opportunities for OEMs
With rise in adoption of electric two-wheeler and investment towards charging infrastructure in South-East Asia is to create opportunities for OEMs to integrate e-axle systems into electric two-wheelers, particularly in high-density markets such as Indonesia, Vietnam, Thailand, India and the Philippines. The country’s two-wheeler segment is transitioning from ICE to electric and within this shift, e-axle integration is becoming a strategic priority due to its ability to consolidate the motor, inverter, and reducer into a single compact unit. This not only simplifies drivetrain architecture but also lowers manufacturing complexity and improves vehicle efficiency.While price sensitivity and limited service networks remain key barriers, consumers in the USD 1,200-1,500 range are placing greater importance on product durability, component standardization, and ease of maintenance. Key players such as VinFast, Viar, and NIU, along with emerging companies like Oyika, HORIZON+, and iMotorbike, are adopting modular platform strategies tailored for local assembly and servicing. Additionally, the rise of Battery-as-a-Service and battery-swapping models - led by operators such as Oyika is helping address infrastructure bottlenecks by offering faster turnaround and reduced dependency on fixed charging networks.
At the same time, connected vehicle technologies such as GPS tracking, remote diagnostics, and anti-theft systems are being embedded to support commercial use cases, including last-mile delivery and shared mobility. These trends indicate a shift in consumer and fleet expectations, where basic electric mobility is no longer sufficient; OEMs are now expected to offer integrated, low-maintenance, and service-ready solutions. The future growth of e-axle adoption will depend on how well manufacturers align product design with local usage conditions, cost constraints, and infrastructure readiness.
Fleet Electrification, Battery Swapping, and Local Manufacturing to emerge as the growth opportunities for faster shift to two-wheeler e-axle market
The South-East Asia two-wheeler e-axle market presents multiple growth opportunities driven by structural shifts in mobility demand and technology deployment. Fleet electrification among delivery and ride-hailing operators is a major growth area, as these high-usage segments require durable, low-maintenance vehicles. Battery swapping infrastructure, led by players like Oyika, is expanding, helping to reduce range anxiety and improve operational uptime. Modular e-axle platforms tailored for local assembly and servicing are gaining traction as OEMs seek to lower production costs and simplify maintenance.The integration of smart connectivity features such as GPS, diagnostics, and theft alerts is creating added value for fleet managers and consumers. Financing models such as vehicle leasing and subscription services are also making e-axle-based electric scooters more accessible in price-sensitive segments. Government incentives and localization mandates in markets like India, Indonesia, Vietnam, and Thailand are encouraging domestic production of e-axle systems and components. Additionally, the retrofit market for converting ICE two-wheelers to electric using e-axle kits is showing early potential. Strategic public-private partnerships aimed at improving battery standards, swapping protocols, and service coverage can further accelerate adoption. OEMs that align their e-axle product strategies with these trends will be well-positioned to capture market share.
South-East Asia is projected to demonstrate the significant growth in the electric two-wheeler e-axle market during the forecast period.
South-East Asia is becoming a strategically important region for the electric two-wheeler (E2W) e-axle market, supported by domestic electrification policies, urban mobility needs, and growing localization efforts. In April 2024, India’s Ola Electric began in-house production of integrated e-axles at its FutureFactory to strengthen vertical integration. In June 2025, JK Fenner partnered with Korea’s NMC Motors to manufacture localized e-axles, further building India’s EV drivetrain capabilities.In January 2024, Vietnam’s VinFast expanded its electric two-wheeler production by vertically integrating drivetrain components such as motors and gearboxes for both domestic and export use. In November 2023, Indonesia’s Volta announced the establishment of a drivetrain assembly unit in Semarang to support its growing EV lineup, aligning with the government’s target of 2 million electric motorcycles by 2025. Collectively, these developments demonstrate how India, Vietnam, and Indonesia are driving South-East Asia’s rise as a critical hub for compact, localized, and scalable E2W e-axle solutions.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
- By Company Type: Tier I - 24%, Tier II - 67%, and Tier III - 9%
- By Designation: C-Level - 33%, Managers - 52%, and Executives - 15%
- By Region: China - 22%, India - 38%, Vietnam - 13%, Malaysia - 11, Philippines - 9 and Indonesia - 7%
Research Coverage:
The report covers the South-East Asia Two-wheeler market in terms of south-east Asian countries (China, India, Indonesia, Vietnam, Philippines, and Malaysia). It covers the competitive assessment of the major OEMs operating in South-East Asian Two-wheelers and other market ecosystem players such as Tier I and tech companies.The study also includes an in-depth comparative analysis of the current offerings, their comparison with other players, focus areas and future plans.
Key Benefits of Buying the Report:
- The report will help market leaders/new entrants understand the ongoing developments in the South-East Asia Two-wheeler market.
- This report will help stakeholders understand the current offerings and anticipated future plans of the OEMs & Tier Is along with separate analysis for global and Chinese players.
- The report will also help stakeholders understand the market pulse and provide information on key market drivers, challenges, and technology analysis.
- The report will also help stakeholders understand the current and future penetration trends of the South-East Asia Two-wheelers.
The report provides insight into the following points:
- Analysis of key drivers (Stringent regulations, Local manufacturing, Policies and Subsidies), and challenges (supply chain reliance, Thermal Management and Continuous Power Delivery, Torque and Power Constraints Due to Packaging Limitations, Integration Complexity and Reliability Risks)
- Technology Analysis: Detailed insights into ongoing and upcoming technologies and research & development activities in the South-East Asia Two-wheeler market
- Competitive Assessment: In-depth assessment of OEM offering comparison, future plans and strategic developments; similar analysis for Tier I companies operating in South-East Asia Two-wheeler market
Table of Contents
1 Introduction
2 Integration of E-Axle Components into Electric Two-Wheelers
3 Competitor Analysis
4 Strategic Recommendations
5 Appendix
List of Tables
Companies Mentioned
The companies profiled in this South-East Asia Two-wheeler e-Axle market report include:- Musashi Seimitsu Industry Co. Ltd.
- Delta Electronics, Inc.
- Toyota Tsusho Corporation
- Rotontek
- Jk Fenner
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 51 |
| Published | August 2025 |
| Forecast Period | 2025 - 2032 |
| Estimated Market Value in 2025 | 227 Million |
| Forecasted Market Value by 2032 | 584 Million |
| Compound Annual Growth Rate | 14.4% |
| Regions Covered | Asia Pacific |
| No. of Companies Mentioned | 6 |
