Adoption of Electric Vehicles in South East Asia Market with emphasis on India: Gap Analysis

    If there is any region which could use a mobility revolution, that is Southeast Asia. Traffic in emerging Southeast Asian countries has become synonymous with congestion and smog. In order to protect a greener and sustainable environment, the major countries and cities in this region are striving to adopt electric vehicle (EV) technology. As consumers are become environmentally conscious, the demand for EV has seen an uptick. Huge numbers of automotive companies are ready to transform and adopt electric vehicles, and some of them have already started by building components instead of the whole electric vehicle.

    Congestion and deteriorating urban air quality are acute challenges faced by many South East Asia cities. With increasing urbanization and growing mobility needs, the demand for conventional fuel is expected to go through the roof as well, putting severe pressure on fuel import bills. EVs therefore, appear to be in the sweet spot of alleviating a slew of mobility issues. They have zero tailpipe emission, are virtually noiseless, and can reduce dependence on oil and utilize greener or locally available fuels.

    Although EV uptake across South East Asia remains comparatively low, consumers are aware of the di­fferences in various EV technologies such as Battery Electric Vehicles (BEVs), Plug-in Hybrid Vehicles (PHEVs), Full Hybrid, and Nissan e-POWER vehicles. The highest association of EVs is for BEVs at 83%.

    According to the recent study on Southeast Asian EV market by Masterfox Consulting Group (MCG), the association with BEVs is relatively weak in Thailand and Malaysia. This could be mainly due to the significant presence of full hybrids in Malaysia and Thailand which skews consumers’ association of EVs with Hybrids. On the other hand, respondents in Singapore, Indonesia, and Vietnam are more evolved in their association with BEVs.

    According to the recent study on Southeast Asian EV market by Masterfox Consulting Group (MCG), there is significant latent demand for EVs across the markets. However, the current uptake rate is not a true reflection of this underlying demand. Of the 1,800 new car intenders surveyed, 37% revealed that they would certainly consider EVs when they make their next purchase decision. Respondents in the Philippines, Thailand, and Indonesia are the most eager to buy EVs.

    Key Factors that Driving the Adoption of EVs

    1. Benefits associated with commercial electric vehicles:

    Better for the environment: Electric Vehicle helps to reduce harmful air pollution from exhaust emissions. An EV has zero exhaust emissions. According to International Energy Agency, more than 20% of the CO2 global emissions can be reduced through the adoption of sustainable transportation systems. 

    1. Battery Developments and Cost Reductions

    • The development of batteries for consumer electronics provided invaluable experience for the production of lithium-ion (Li-ion) cells. It facilitated increased production and justified considerable investment in research and development, leading to significant cost reductions and improved performance.

    • The impressive progress made in recent years to improve battery performance and reduced costs enabled the use of Li-ion batteries in the automotive sector, and key cost and performance drivers identified for the further improvement of Li-ion batteries include battery chemistry, energy storage capacity, manufacturing scale and charging speeds.

    • The development in the battery performance further drives the electric vehicles market in the region

    Indian Electric Vehicle Market Trends and Opportunity:

    Electric Vehicle market in India is expected to grow with a CAGR over 37% during the forecast period 2019-2024. The Indian Electric Vehicle market is expected to reach over USD 2.5 billion by the end of 2024, owing increasing consumer inclination towards electric vehicles coupled with growing concerns associated with rising air pollution levels across the country. Rising number of R&D efforts by various leading automobile companies to develop more advanced, affordable and feature-rich electric vehicles also driving the market.

    Government of India is regularly taking measures to push the adoption of cleaner vehicles in the country. The government provides various subsidies to electric vehicle buyers. In addition, increasing demand for electric vehicles is encouraging leading industry players to come up with new models.

    Conclusion & Recommendation from Masterfox Consulting Group:

    Electric vehicles may need policies driven by governments such as London’s ultra-low emission zone (ULEZ), which will now charge inefficient vehicles an entry fee to access the city of London. Following that, Vietnam government is looking at moving in this direction: to only allow electric vehicles on the roads of the cities.

    However, there are some challenges to overcome before this region can truly adopt electric vehicle technology. The main barriers to adoption of electric vehicles in Southeast Asia are the higher rates of tax on electric vehicles, the lack of a charging infrastructure with convenient proximity and the limited driving range of the vehicles. Governmental intervention is the key to driving the growth of electric vehicles in ASEAN, at a level that ensures the deployment of a charging infrastructure. This infrastructure must hold fast to compatible standards, to support mass deployment.

    Get more in-depth analysis and research report on Southeast Asia Electric Vehicle Adoption Market.

    Feel free to contact us,

    Masterfox Consulting Group (MCG)

    e-mail: info@masterfoxconsultinggroup.com

    Contact: +91-98110 25630

    Related Reports: 

    Global Electric Vehicle (EV) Charging StationMarket by Product Type(AC EV charging station, &DC EV charging station), by AC EV Charging Station (Level 1 & Level 2), by DC EV Charging Station(CHAdeMO, Combiner charging station&Others), by Installation Type(Residential, &Commercial), by Supplier Type ( Private charging Station & OE charging station)by Region (North America, Europe, Asia Pacific, Middle East &Africa and Latin America); Size and Forecast, 2018-2025


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