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, according to a research company.

The region recorded 30 new automotive manufacturing projects with disclosed investments totalling US$ 36 billion in the third quarter of 2026, compared with 25 projects worth US$ 9.1 billion in the previous quarter.

However, Hyundai Motor Group's KRW 42 trillion (US$ 27.5 billion) domestic investment programme in South Korea accounted for approximately 76% of the latest total. Excluding this investment, the disclosed value amounted to approximately US$ 8.5 billion.

The EV supply chain accounted for 17 projects, while automotive components represented another 11. Only two involved EV assembly, with no new conventional passenger vehicle or motorcycle manufacturing plants recorded. The trend indicates a greater focus on localising battery production, securing critical materials and developing component supply chains around vehicle manufacturing hubs.

China moves towards solid-state battery industrialisation

China recorded eight automotive investment projects worth US$ 5.7 billion, all within the EV supply chain. Six involved solid-state battery cells, packs, materials and production lines, indicating a shift towards pilot-scale and early commercial production.

Docters (Tianjin) New Energy Technology commenced production at a gigawatt-hour-scale all-solid-state battery line, manufacturing cells with an energy density of 350 watt-hours per kilogramme. Saike Power began construction of a 0.1 GWh sulphide-based all-solid-state battery pilot line in Yibin.

Investment also extended to battery materials. Gotion High-Tech is developing a 20,000-ton-a-year solid-state battery materials facility in Anqing, including high-purity lithium sulphide production. Shandong Chuanglu Advanced Battery Technology commissioned a solid-state electrolyte production line in Jinan, while Beijing WeLion began construction of a 3 GWh solid-state battery pack facility in Gansu, linked to an electric heavy-truck logistics park.

Conventional battery technologies continue to attract larger investments. Sunwoda's CNY 40 billion (US$ 5.6 billion) Phase III expansion in Zaozhuang will add 120 GWh of capacity across 12 production lines, with two dedicated to solid-state batteries.

A research company expects solid-state batteries to remain at the pilot and early commercial production stages in the near term, although investments across cells, materials and packs indicate preparations for eventual commercial-scale production.

India's investment shifts towards supplier localisation

India recorded eight automotive manufacturing projects worth US$ 252 million in the third quarter, all involving components. This contrasts with US$ 5.4 billion in investment in the second quarter, largely driven by Toyota Kirloskar Motor's US$ 4.5 billion SUV manufacturing projects.

Uno Minda accounted for four projects worth approximately US$ 110 million. These included 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 announced a EUR 70 million (US$ 82 million) expansion across three Indian locations, covering clean mobility, lighting and seating, with completion targeted for 2031.

Maharashtra is also developing as an automotive supplier cluster. Toyoda Gosei's US$ 60 million plant in the Bidkin Industrial Area will produce bumpers, instrument panels, airbags and steering wheels, supporting Toyota Kirloskar Motor's planned SUV manufacturing operations. Uno Minda's joint venture with Tachi-S adds to earlier investments by JSW Motors and Uno Minda in Chhatrapati Sambhajinagar.

A research company said these developments indicate the formation of a tier-one supplier base around new vehicle manufacturing facilities, supporting higher local content for domestic sales and exports.

ASEAN expands battery localisation

ASEAN recorded five projects with disclosed investments of approximately US$ 2.6 billion in the third quarter, led by Thailand's EV manufacturing and battery supply chain expansion.

BYD plans to invest THB 42 billion (US$ 1.2 billion) in a second battery cell and pack assembly line at its Rayong facility, increasing annual capacity towards 300,000 battery packs. Great Wall Motor will invest THB 31 billion in additional stamping and body-welding capacity at its Rayong plant to increase local component production.

Both investments are aligned with Thailand's EV3.0 and EV3.5 localisation requirements and will increase domestic production capacity in Rayong.

Elsewhere, Indonesia's Pure Battery Technologies has proposed a US$ 350 million facility that would become the country's first precursor cathode active material (pCAM) plant. It will process domestically produced mixed hydroxide precipitate into battery precursor materials, extending Indonesia's nickel downstreaming strategy along the EV battery supply chain.

In Vietnam, Kim Long Motor Hue and BYD Battery commenced production at the first phase of a US$ 135 million lithium iron phosphate battery facility, with an annual capacity of 3 GWh. The second phase is expected to increase capacity to 6 GWh 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 pilot facility in Sepang for graphene-enhanced nickel manganese cobalt battery cells.

Battery supply chains extend beyond established hubs

Other Asia-Pacific markets are attracting investment in 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 biographite production using forestry residues.

The company aims to move from pilot operations to commercial battery anode material production by 2030, providing 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. Chinese manufacturers are also expanding into newer South Asian markets. In Bangladesh, Runner Automobiles is expanding its existing factory and installing machinery to manufacture BYD electric vehicles locally.

Supply chain development becomes a regional investment priority
The third-quarter investment pattern indicates that Asia-Pacific's automotive industry is placing greater emphasis on battery production, critical materials and component localisation rather than vehicle assembly alone.

China's investment in solid-state batteries, India's development of supplier clusters and ASEAN's expansion of battery manufacturing and materials processing reflect the different regional approaches to EV supply chain development. These projects could increase supply chain integration, reduce dependence on imported components and support regional production facilities serving domestic and export markets.