ASEAN Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)
The ASEAN Electric Vehicle Market was valued at USD 498. 93 Million in 2021 and is expected to reach USD 2,665. 3 Million by 2027, registering a CAGR of 32. 73% during the forecast period (2022 - 2027).
New York, June 10, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "ASEAN Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)" - https://www.reportlinker.com/p06249293/?utm_source=GNW
The COVID-19 pandemic had a negative impact on the market as manufacturing activities were on halt for several months in the first half of the year 2020. Also, the disrupted supply chain and the shortage of chips in the year 2021 had a negative impact on the growth of the market studied. The ASEAN countries are along major sea trade routes and due to the lockdown and shutdown of countries, the sea trade has also come to a halt, stopping transport of vehicles across the world. However, the gradual opening of the market in the later stages of 2020 and 2021 has paved way for economic revival of the market.
Government policies to support the growth of electric vehicles and plans to enlarge the electric vehicle charging infrastructure are expected to remain prominent market drivers during the forecast period. Several governments across the ASEAN region have announced their plans to have a certain portion of their new vehicles sales to be electric in the upcoming few years.
Governments play a vital role in encouraging the expansion of electric vehicle charging infrastructure. As the ASEAN governments push for further vehicle electrification, there must be usage and purchase incentives that either lower the overall cost of ownership or make driving electric vehicles more convenient for customers. Although there are few incentives for purchasing electric vehicles or charging infrastructure are in the Philippines, the country holds 5% and 4% of worldwide nickel and cobalt reserves, respectively, and thus has enormous potential to participate more actively in the EV battery production value chain.
EVs are becoming more popular in Indonesia, owing to ride-hailing companies like Grab, which recently announced a cooperation with local power supplier PLN to expand its fleet charging infrastructure. In the coming years, public transportation operators such as Transjakarta want to increase their electric bus fleet to 10,000 units. Such instances are evident sign for the growth of electric vehicle market across the region.
Key Market Trends
Electric Vehicle Sharing Platform will propel the Market
Vehicle sharing services in the region are updating their vehicle fleet to electric as the new startups are getting huge funding from various EV manufacturers and tech companies. Governments are also drafting various policies to increase EV adoption in the region.
According to the National Automotive Policy (NAP) of Malaysia, their initial target was to manufacture 85% of vehicles produced locally to be EVs by 2020.
Whereas in January 2020, electric vehicle ride-hailing startup Grab and Hyundai collectively launched GrabCar Elektrik. GrabCar Elektrik Service will start with the fleet of 50 Hyundai Ioniq EVs, at Jakarta’s Soekarno-Hatta International Airport and in 2019, Grab announced that company has secured around USD 1.46 billion funds from the SoftBank Vision Fund. Apart from that Grab has already raised more than $4.5 billion with investments from various automakers such as Toyota and Hyundai Motor, along with other tech giants Microsoft.
Similarly, for an electric two-wheeler, GrabWheels has secured around USD 30 million funding from KYMCO a Taiwan based electric bikes manufacturer. Through this strategic partnership, both companies will develop new two-wheeler electric vehicle solutions for faster adoption of EVs in the region.
Singapore is Expected to play key role
Singapore has been at the forefront of EV charging infrastructure in ASEAN, with more than 1,800 public charging points available. In addition, the government of Singapore is planning to install 60,000 more charging points by 2030 end.
The Singapore government has set a new target worth USD 22 million between 2021-2025 to promote EV adoption among consumers and increase the number of chargers at private properties to robust the charging infrastructure. In tandem, Singapore has successfully established itself as the key R&D hotspot for its EV industry. This, in turn, has been done by facilitating investments projects from several multinationals and start-ups companies to build a strong local EV ecosystem in Singapore.
The governments of Singapore are providing support to increase electric mobility to minimize pollution. Moreover, an increase in electric mobility is expected to increase electric vehicle sales. For instance by 2040, Singapore has planned to phase out its all-internal combustion engines and replace all of them with cleaner energy vehicles. The newly founded National Electric Vehicle Centre (NEVC) is heading the campaign to promote wider EV adoption, in accordance with Singapore’s objective for all vehicles to run on greener energy by 2040. This enables Singapore to develop new EV-related technologies in a safe and innovative manner.
Competitive Landscape
The ASEAN electric vehicle market is moderately consolidated, has several active players, owing to the presence of new startups and major conventional ICE vehicles OEMs, As the market is witnessing the entry of various electric vehicle ride-hailing startups and automakers. Some of the major players in the market are Hyundai, Tesla Inc., BMW Group, MG Motors and Mitsubishi Motor Company amongst others. The local governments are preparing for scaling up the local electric vehicle production and various automotive and ride-hailing companies are forming strategic alliances with other players in the market. For instance,
In March 2022, Hyundai Motor Group, launched its new automotive plant in Indonesia that will produce first locally assembled electric vehicle, this initiative has been the part of President Joko Widodo’s goal for developing a full EV supply chain in Indonesia.
In 2021, the Asian Development Bank and Energy Absolute signed a USD 48 million green loan valuation to finance countrywide electric vehicle charging infrastructure in Thailand.
In 2020, Thailand’s government has announced a new roadmap to promote EV through various state agencies and has set an aggressive target to manufacture around 250,000 EVs, in which 3,000 are electric buses and 53,000 electric motorcycles by 2025.
In 2018, Grab and SP Group entered into a strategic partnership. In this partnership Grab will add 200 new fast-charging electric vehicles and it will utilize SP fast-charging network. This will deliver greater cost savings for driver-partners. SP has planning to add 500 publicly accessible DC (direct current) and AC (alternating current) charging points, by 2020.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06249293/?utm_source=GNW
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