Market Trends of APAC Electric Vehicle Industry
The Passenger Cars Segment Holds the Highest Share in the Market
Due to rising gasoline costs, the use of electric passenger cars has increased exponentially in various countries. Moreover, governments and companies of many countries are focusing on completely banning the use of ICE cars in the future and promoting the use of electricity on the roads to achieve the goal of a sustainable future.
In addition, through the policies for electric vehicles, many governments are providing tax exemptions and fiscal incentives for the sale of electric passenger cars. For example,
- India aims to triple its current renewable capacity, with the EV30 at 30 campaign specifically targeting the goal of ensuring that electric vehicles (EVs) account for at least 30% of new vehicle sales by 2030.
The ongoing transition and technological advancements have resulted in a completely innovative design and approach of powertrains with high mileage, less maintenance, and greater reliability for new-era electric vehicles. Considering the scenario, various companies are working on the launch of new models. For example,
- In March 2024, Audi announced a refresh of the 2024 Audi Q4 e-tron and Q4 Sportback e-tron models with a more efficient and powerful rear drive unit and multiple other improvements.
- Similarly, in March 2024, BMW launched a new vehicle model, the iX electric SUV, for the Indian market.
- In June 2023, the Indonesian Electric Vehicle Industry Association (Periklindo) joined the ASEAN Federation of Electric Vehicle Associations (AFEVA). The Philippines’ Electric Vehicle Association of the Philippines (EVAP) and Malaysia’s Electric Vehicle Association of Malaysia (EVAM) agreed to welcome the Indonesian Electric Vehicle Industry Association. During the Periklindo Electric Vehicle Show, where the Indonesian EV Industry Association formalized its entry into AFEVA, EVAM, and EVAP, there was an opportunity to discuss ways further to push the EV industry in the region with Periklindo.
The electric vehicle market is expected to grow in the coming years due to the development and growing number of smart passenger vehicles.
China Dominates the Asia-Pacific Market
As demand for electric vehicles is growing rapidly, changing consumer preferences have made China the largest electric vehicle market. China’s automotive industry has been growing rapidly, and the country is playing an increasingly important role in the worldwide automotive market. According to the CAAM, in 2023, China’s auto production and sales hit new record highs. New EV sales volume maintained rapid growth and exceeded 9 million units, with a market share of 30%.
Some of the largest projects of China, such as the South-North Water Transfer Project with a 200-kilometer-long tunnel moving water from the country’s Yangtze River and Songya Lake Ecological New City, will need various construction equipment, thus boosting the growth of electric commercial vehicles used for construction.
Considering the growth of electric vehicles in China, various companies are launching new products to remain ahead of the competition. For example:
- In December 2023, Chinese company Xiaomi unveiled its first electric car and announced its plans to become one of the world's top five automakers.
With the growth of electric vehicles, companies and governments are making huge investments in expanding charging infrastructure. For instance:
- China continues to be the world’s largest automobile vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025.
- Based on data from the China Association of Automobile Manufacturers, China's car output exceeded 30.16 million units in 2023, up by 11.6% Y-o-Y, and sales exceeded 30.09 million units, up by 12%.
- In February 2024, Huawei Technologies made strategies and a roadmap for the installation of 100,000 fast electric vehicle charging stations in China in a year.
- China is also the largest charging infrastructure network in the world. In June 2023, the General Office of the State Council issued guiding opinions on the further establishment of a high-quality charging infrastructure system.
Such factors are anticipated to drive the electric vehicle market in China over the forecast period.
