The Races of South East Asia EV
By Neil Foo
kuala lumpur — EV ( Electrical Vehicle) is widely accepted that it can be a way to reduce the impact of global warming via cleaner technology and phasing out greenhouse gas emissions. Furthermore, it could be less dependent on the fluctuation of petroleum price all this while.
South East Asia (SEA) countries are taking multiple steps forward in the EV race and some fact finding as below :
- EV penetration in SEA stood at 4% in 2020
- EV penetration expected to grow five times to 20% by 2025
- EV to outsell internal combustion engine vehicles (ICEVs) in SEA from 2035
- EVs are given its addressable market of 40 million units in the 4W and 220 million units in the 2W segments respectively
- Establishing an essential public charging network is a strategic first step
- American, European, Japanese, South Korean EV are here
- China has a proven EV model with a complete value chain potential for SEA’s partnership
- Thailand, Indonesia and Singapore remain ahead of the pack in terms of developing EV-friendly policies
- Malaysian consumers are very price-sensitive and pro-national cars, whereas the Philippines prefers motorcycles
- Vietnam caught surprise with her EV aggressiveness
- Indonesia glides with the natural resources ie. Nickle
The most significant SEA’s moves are :
Singapore
- lowering the taxes for EVsas well as stopping diesel car and taxi registrations
- Budget 2020 clearly to phase out petrol and diesel-powered vehiclesby 2040
- Budget 2021, allocated S$30 million(about USD22.5 million) over the next 5 years for EV-related initiatives, including building more charging stations
- Hyundai is also already building a small-scale EV production facility in Singaporewith a planned target of 30,000 units per year by 2025
Indonesia
- into Nickle mining as the major world raw material miner and processor for lithium battery related used in EV
- wants their EVs to make up at least 20% of its overall production by 2025, including 2,200 EVs, 711,000 hybrids and 2.1 million electric motorcycles
- with Indonesia EV Development Map, Toyota Motor Corp has planned to invest US$2 billion to develop EVs in Indonesia from 2019 until 2023
- Hyundai moves their regional HQ to Indonesia
Thailand
- is updating an existing tax policy that exempts clean vehicles from an excise tax to encourage more EV adoption and is looking to be the region’s EV hub
- set a goal way back in 2015 to create 1.2 million electric vehicles by 2026 with industry incentives, standards, infrastructure and charging prices, etc. by 2036
- Back in 2018, Thailand Board of Investment (BOI) has approved BMW, Mercedes-Benz, Toyota, Honda, Nissan and Mitsubishi and SAIC for their EV investment on this 70 million population soil
- Nissan announced in February 2021 that it will make Thailand its hub for EVs in the SEA region
Vietnam
- Vietnam Vinfast has also recently launched its very own locally produced EVs – three SUVs with up to Level 3 autonomous driving
Malaysia
- launched the National Automotive Policy 2020(NAP2020)
- national car Proton and Produa have not launched any EV yet
- MyKar announced to launch low price EV RM50k ( about USD12k)
- Ho Wah Genting Berhad (HWGB 9601)’s HWGB EVSdn Bhd (HWGB EV) has entered into separate Memorandum of Understanding with Beijing Seiyong Motor Co. Ltd, Xiamen Chief Electric Vehicle Co Ltd, AiTou Venture Capital and Malton Berhad (Malton 6181) respectively for the purpose of introducing electric vehicles in South East Asia and Malaysia
SEA’s 600 million people population with the vision of migrating to higher income bracket, poise a great potential market to transform the petrol-powered car to EV.
American, European, Japanese, Korean, Chinese EV are eyeing on the SEA’s EV related masterplans to set their strategic footing in racing for the meat pie of the world highest GDP growth region!
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