Growing EV industry in ASEAN

Published onNovember 27, 2020

Electric Vehicles (EVs), including hybrid electric cars, can drastically reduce carbon emissions released into the environment. Compared to conventional cars that release unhealthy amounts of carbon dioxide, carbon monoxide and nitrogen oxide into the environment, battery-electric cars effectively produce zero-emissions from their tailpipes.  Bloomberg Energy Finance predicts that 54 percent of new cars sold in 2040 will be EVs, accounting for 33 percent of the global car fleet by then. A study commissioned by Nissan in 2018 found that a third of Southeast Asian consumers are open to buying an EV. The study titled, ‘Future of Electric Vehicles in Southeast Asia’, found that while EV sales in ASEAN member states is generally weak – consumers in the Philippines, Thailand and Indonesia were the most enthusiastic about the future of EVs. Proper policies and incentives will go a long way in getting more Southeast Asians to drive EVs. A report published by the ASEAN Secretariat titled, ‘ASEAN Fuel Economy Roadmap for Transport Sector 2018-2025: With Focus on Light-Duty Vehicles’ found that strong EV sales in the Unites States (US), Europe, Japan and China are mainly driven by policy support and a minimum subsidy of US$3,000.