Passenger electric vehicle (EV) sales in Southeast Asia will account for lower than 2% of total passenger vehicle sales within the region in 2022, in accordance with the most recent research from the Global Passenger Electric Vehicle Sales Tracker.
However, the electrical vehicle market size in ASEAN is predicted to grow significantly from USD 858.76 million in 2023 to USD 3,537.65 million in 2028. During the forecast period from 2023 to 2023, this growth is predicted might be 32.73% each year. 2028.
As of Q3 2022, Thailand controlled the electrical vehicle (EV) market share in Southeast Asia at around 59%, making it the most important. Indonesia got here in second place with a market share of 25%. On the opposite hand, the market share of electrical vehicle sales within the Philippines may be very low, at lower than one percent. The Thai government is actively promoting EV sales through demand-side incentives and company tax policies that favor EV manufacturers.
Thailand, which has the most important auto manufacturing sector in Southeast Asia, is in search of to leverage its manufacturing expertise to draw automakers to supply and sell electric vehicles within the country. Indonesia and Vietnam even have a bonus when it comes to mineral resources, giving them a comparative advantage over other countries within the region.
On the opposite hand, Singapore has taken a number one role in electric vehicle charging infrastructure in ASEAN, with over 1,800 public charging stations. The Singapore government has ambitious plans to put in an extra 60,000 charging points by the tip of 2030 to strengthen charging infrastructure.
Additionally, Singapore has successfully established itself as a serious research and development center in the electrical vehicle industry. To achieve this, they encouraged investment from international corporations and start-ups to construct a strong electric vehicle ecosystem in Singapore.
Southeast Asian countries have set high EV targets and introduced various incentives to advertise EV adoption amongst consumers and attract EV manufacturers to establish manufacturing plants within the region.
Consumer sentiment towards electric vehicles in Southeast Asia can also be positive. The latest data shows that the majority consumers within the region are willing to pay the identical or much more for an electrical vehicle.
Currently, the electrical automobile market in Southeast Asia is changing. Chinese automaker Wuling has recently taken the lead in electric automobile sales within the region, becoming one among the most cost effective electric vehicle options. In the automotive group category, Vingroup dominates EV sales in Southeast Asia, followed by Wuling (as a part of the SAIC-GM-Wuling group) and Volvo (as a subsidiary of Geely Holdings).
Battery electric vehicles (BEVs) were the dominant sales, accounting for 64.6% of total EV sales, while plug-in hybrid vehicles (PHEVs) made up the remainder. It is estimated that the full variety of AC and DC charging stations will exceed 200 thousand in the longer term, reflecting rapid growth.
According to Counter Point Research analyst Abhilash Gupta, demand for electric passenger cars in Southeast Asia is steadily increasing, even though it still holds a small market share in comparison with global electric automobile sales. By 2022, sales of passenger electric vehicles within the region will account for just 0.5% of total global sales.
However, with rising geopolitical tensions between China and Western countries, Southeast Asia is becoming a beautiful destination for Chinese automakers trying to expand their international markets. The necessary role of governments in supporting the event of electrical vehicles and efforts to enhance electric vehicle charging infrastructure are expected to proceed to be the key aspects driving the market in the course of the forecast period.
Several governments in ASEAN have also announced plans to require that electric vehicles account for a portion of latest vehicle sales in the approaching years. Additionally, stringent regulations implemented by regulators in ASEAN countries to scale back fuel emissions and improve road safety impact the whole automotive industry within the region.
By 2040, it’s estimated that roughly 54% of latest automobile sales and 33% of the full global automobile fleet might be electric vehicles. More than 50% of electrical vehicles will use batteries as an influence source. ASEAN is one among the important thing markets for vehicle fleet sales and is predicted to experience significant growth.
Reference:
Ganbold, S. (2023). Southeast Asia electric vehicle (EV) sales market share for Q3 2022 by leading country. Politician
Gupta, Abhilash. (2023). Electric vehicles are gaining popularity in Southeast Asia; Thailand dominates when it comes to volume. Opposite point
Mordor Intelligence. Analysis of the scale and share of the electrical vehicle market in ASEAN – growth trends and forecasts (2023–2028)
