EVs in Southeast Asia: A Primer

EVs in Southeast Asia

Electric vehicles (EVs) have become the next hot trend across global mobility markets. Here’s a look at what’s transpired so far for EVs in Southeast Asia.

Toyota and Honda designed the Prius and Insight respectively, as the world’s first hybrids. These hybrids were a breakthrough for EVs. Though they did not sell well, they still showed a large opportunity for the global EV market.

Today, the EV market in Asia is having its revolution, led by China. Out of the 7.2 million EVs in use worldwide, China has 2.3 million – a third of the global stock. China sold about 1.2 million plug-in EVs in 2018, over 3x the sales in the US. Cities like Shenzhen have over 16,000 e-buses that cost more than $1 Billion.

At the same time, EVs in Southeast Asia are also gaining traction. It was forecasted that by 2027, South East Asia would grow its EV Market from US$20.27 billion in 2018 to $59.10 billion, according to a report by Meticulous Research.

EVs in Southeast Asia

A report by Deloitte points to five enablers that can help increase the attractiveness of EV adoption in Southeast Asia. These are the total cost of ownership, battery range and life, charging networks, regulatory environment, and value chain potential of the automotive industry in the region.

The report noted that Indonesia, Malaysia, and Vietnam were aspiring markets for EVs in Southeast Asia, with the latter two countries leading in terms of cost of ownership. According to Deloitte’s analysis, Indonesia, Malaysia, Vietnam and Singapore were leading the Southeast Asian EV market, with Indonesia emerging above the rest for regulations, battery and charging sectors, and value chain potential.

In Indonesia, the government aims to increase the production of EVs to 20% by 2025, and has been able to attract major EV players and investors. Many ride-sharing apps have also adopted EVs, while public transport is planning to use all EV buses.

Indonesia is also the largest producer of nickel, a key component of lithium batteries used in EVs. The country placed a ban on exports of nickel ore in order to develop higher-value products locally. However, it will need a lot of investments in order to produce the batteries themselves.

Malaysia has also been able to increase its momentum in the manufacturing of EVs and lithium-ion batteries. Right now, the Malaysia Automotive, Robotics, and IoT Institute are working to build EV buses, made and used in Malaysia. The country also has plans to announce tax incentives under an EV policy directed towards adoption of passenger cars, scooters, motorbikes and commercial vehicles, as well as incentives for manufactures and service providers.

Vietnam’s EV sector is dominated by Vinfast, which produces electric two-wheelers, four-wheelers, and passenger buses. Vietnam also has plans to expand its EV manufacturing and research. Singapore, on the other hand, has high costs for both labor and land, therefore it discourages the setting up of assembly factories. However, although EV adoption is not high, government incentives and increased focus in EVs in public transport have been positive for the EV market in Singapore.

The Philippines passed the Electric Vehicles and Charging Stations Act earlier this year to promote the use of EVs and dial down dependence on fossil fuels. It will set up guidelines for the manufacture, import, use, and regulation of EVs, hybrids, parts, and batteries. Thailand also recently offered tax holidays and tariff exemptions for EV producers and products. Furthermore, Thailand even approved a new EV policy to ensure that all vehicles produced in Thailand by 2035 have to be EVs.

Future of the industry

Overall, the Asian electric vehicle market is increasing at a rapid rate, which will require more charging infrastructure than there is in the current market. Furthermore, the EV market has been heavily subsidized by regional governments.

In Southeast Asia, about two-thirds of respondents in a study noted that they were more willing to consider an EV than they were five years ago, and are likely to take up electrified mobility soon. Moreover, 37% of the surveyed respondents said that they would consider EVs for their next car purchase in the next three years.

However, Anna-Marie Baisden, head of autos research at Fitch Solutions, said in an interview with the CNBC that, “[Asia] is playing catch-up. When we talk about the Asian EV market, we’re predominantly talking about China, which still accounts for around 90% of sales.”

It remains to be seen how the industry will self-sustain. The future is promising, however, and it is likely that the future of the market for EVs will lie in Asia’s hands.

Header Image by Adrian N on Unsplash

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email
George Lim

RELATED POSTS

Are In-App Advertisements Profitable

Are In-App Advertisements Profitable?

In August 2021, Uber began showing ads in its core app in an attempt to find new avenues for revenue generation. The company aims to earn US$300 million in revenue from ads by 2022. The first company to be featured in Uber’s core app advertisements is Marriott Hotels. The ads pop up on user screens after they book a ride with the app.

What Is a SMART Contract

What Is a SMART Contract?

In August 2021, the cryptocurrency market hit the US$2 trillion mark. The NFT market has been doing equally well, with sales volume surging to US$2.5 billion in the first quarter of 2021. The common thread between these figures is the use of blockchain technology and smart contracts.

Facebook Is Reading Your WhatsApp Chats

Facebook Is Reading Your WhatsApp Chats: Report

Your WhatsApp chats are anything but private, as per a new report by ProPublica. Facebook pays over 1,000 contract workers across Austin, Texas, Dublin and Singapore hourly to sift through millions of private messages, images and videos. The workers can only access the messages that users report.

Innovations in Art at SOTHEBY’S Autumn Auctions

Innovations in Art at SOTHEBY’S Autumn Auctions

This autumn Sotheby’s is collaborating with the K11 group on Sotheby’s highly anticipated Autumn Auctions Preview at K11 Musea between September 18-21. This exhibit will be the grand reveal of over 40 art pieces that the auction house will have for sale between September and October.

OpenSea-Bans-Insider-Trading

OpenSea Bans Insider Trading after Employee Defrauds Buyers

On September 14, 2021, OpenSea, a popular NFT (Non-Fungible Tokens) marketplace startup, admitted to insider trading on their website. Insider trading happens when people—employees or otherwise—use a company’s non-public knowledge to their financial advantage. OpenSea did not reveal the employee’s name; however, Twitter users took advantage of blockchain’s public access and transparency to ascertain who did it.

Traditional vs Influencer Marketing

Traditional vs Influencer Marketing: Influencer Culture in Entrepreneurship

In a day and age when the average person spends more time scrolling through social media than reading a newspaper, influencers, also known as internet celebrities, have become household names. The fact that their massive followings trust their opinions on various topics, from beauty products to online courses, is constantly transforming the dynamic landscape of marketing and entrepreneurship.