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CBRE has released a new viewpoint highlighting recent developments in the automotive retail real estate sector across Asia Pacific amid a shifting market environment. The report outlines how supply chain disruptions, changing consumer demands, regulatory shifts, and sustainability pressures have prompted automakers to reorganise operations and reassess real estate strategies. It also sheds light on key trends such as the expansion of mainland Chinese EV brands, the growing role of landlords in EV charging infrastructure, and the importance of strategic market mapping for future retail formats.
CBRE recently released a report analysing the latest trends in automotive retail real estate across the Asia Pacific region, which continues to evolve within a complex and competitive environment. Advertisement
In recent years, the global automotive sector has faced multiple challenges, including disruptions in supply chains, the ongoing transition towards electric vehicles followed by a slowdown in EV sales, shifting consumer preferences, and rising geopolitical tensions and tariffs.
Manufacturers continuing to produce petrol vehicles are also under pressure to comply with 2030 net-zero and sustainability targets while navigating regulatory frameworks for emerging technologies such as connected and autonomous vehicles.
The industry is further affected by labour shortages and a widening skills gap, as companies find it increasingly difficult to attract employees with expertise in EV technology, software development, and data analytics.
In response to these evolving conditions, many automotive firms in Asia Pacific have begun reorganising their operations, cutting workforce numbers, and pursuing mergers, acquisitions, and strategic partnerships-actions that are reshaping their real estate needs across the region.
CBRE's report identifies three main insights shaping the future of automotive retail property. First, mainland Chinese EV brands are leading showroom expansion across Asia Pacific, with their attention now turning to emerging Southeast Asian markets such as Indonesia and Thailand. Supported by rising demand for EVs and favourable government policies, these companies are opting for spaces within shopping malls, though some have leased street-level shops and office building ground floors in prime locations due to limited availability.
Second, the increasing adoption of electric vehicles has intensified the need for public charging stations. Retail property owners across Asia Pacific have become vital players in expanding EV charging networks, particularly in shopping malls. Since charging typically takes at least 20 minutes, CBRE observed that EV owners are likely to prefer destinations offering varied entertainment and leisure options during charging times. From landlords- perspective, integrating EV charging points helps extend customer dwell time and enhances overall spending.
Lastly, CBRE advised automakers to conduct thorough market mapping before launching new store formats or expanding operations. This approach ensures that companies identify sites suited to their technical and operational needs before making significant real estate commitments.
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