EV Popularity Growing In ASEAN Countries

Emissions from electric vehicles (EVs) are up to 43% lower than diesel vehicles, and they also have lower lifetime climate impacts than cars with internal combustion engines – two good reasons why EVs are currently doing a roaring trade across the globe. Bloomberg Energy Finance predicts that 54% of new cars sold in 2040 will be EVs, while a Nissan study has concluded that one third of ASEAN countries are interested in purchasing an EV. Buyers in the Philippines, Thailand and Indonesia are leading the way, although more policy changes and incentives are required to further the interest in EVs. Research by the ASEAN Secretariat has shown that strong EV sales in areas like Europe and China are boosted by government supports and subsidies.

The Benefits Of EVs And Hybrids For ASEAN Countries

Both EVs and hybrids are eco-friendly, with pure EVs producing zero tailpipe emissions and hybrid EVs enabling drivers to significantly reduce fuel costs, fuel consumption, and tailpipe emissions. This comes with multiple business opportunities, and is good news for Asia, since 99 of the world’s most polluted cities are located within the continent. In order for citizens to benefit fully from the EV and hybrid boom, more incentives need to be provided. In cities like New York, for instance, a major plan is underway to boost the number of charging facilities. In the US, a federal tax credit of up to $7,500 is granted for all new EVs purchased in 2010 and after. In the Philippines, around 56.2% of people surveyed said that accessibility to charging stations in their vicinity, tax rebates and subsidies would all be strong motivators to purchase EVs.

China Ready To Challenge TESLA

One country in Asia that is leading the way, not only in consumer interest but also in EV manufacture, is China. China is poised to give TESLA a run for its money, with top rival Nio recently reporting forecast-beating earnings results. Nio’s GM has stated that the company is boosting its spending on EVs. Already, Nio has boosted third quarter sales to $628 million. This represents a 146% rise in sales; over 12,000 vehicles have been sold, placing the company at more or less the same position TESLA was in around four years ago. TESLA is also doing a roaring trade in China, where it makes 40% of its sales. There is still a long way to go in terms of normalizing EVs, since only 4.5% of vehicles in China are powered by electricity. However, a key group of EV manufacturers – including BYD and LI, have their eye set on China, with this country offering a higher sales potential than the US, owing to its sizable population. China also has various incentives for customers who buy EVs – including significant tax exemptions.

ASEAN buyers are interested in EVs and hybrid vehicles, but more is needed to motivate them. Measures that need to be adopted include subsidies and the establishment of more charging stations. Countries like China are leading the way in terms of sale and manufacture of EVs and in terms of offering buyers good reasons to make the switch to an EV.