Asia Pacific to Show Long-term Upward Trend in Electric Vehicle Development
Asia Pacific is one of the most lucrative and leading markets for electric vehicles which gives a cutthroat competition to Western regions. Both in terms of production and sales, the emerging region has been on the rise in the global electric vehicles market. Industry analysts are mostly optimistic about the potential of electric vehicles in the region. Trailed by Japan and South Korea, China was expected to reach more than 10.0 million in electric vehicle production by 2022, according to Statista.
The future of electric vehicles in Asia Pacific is predicted to stay encouraging on the back of promising government policies for automotive companies as well as consumers and the need to adopt greener technology amid rising pollution levels. Other crucial factors such as increasing advancement of battery technology, surge in the demand for ride-hailing service, and high focus on the electrification of mass transportation are anticipated to create ample of growth prospects in the Asia Pacific electric vehicles market.
Asia Pacific could Survive COVID-19 Disaster Looming over EV Market
The impact of the COVID-19 pandemic on the Asia Pacific electric vehicles market may be unsettling. Long periods of country-wide lockdown, economic downturn, low consumer purchases, and less consumer willingness to invest in non-essential goods could create stress on the development of the electric vehicles market in the emerging region.
However, the spread of the novel coronavirus is relatively slower in Asia Pacific compared to Western regions. This may help stabilize the business environment in the electric vehicles market of the developing region. Moreover, the growing acceptance of proven economic stimulus plans such as infrastructure rehabilitation, which also create employment opportunities, is anticipated to boost the development of electric vehicle charging stations. This could be a good sign for electric vehicle investors in the region.
Foreign Investments and Government Incentive Plans to Spur Growth
Increasing interest in high-acceleration and high-performance automobiles may support the future rise in the demand for electric vehicles in Asia Pacific. According to market researchers, young adults, probably aged less than 40 years, could likely be among the majority of people intending to buy electric cars in Southeast Asia. Furthermore, foreign automobile companies have been making robust electric vehicle investments in Asia Pacific countries such as China and South Korea in recent years. This is expected to improve the overall outlook of the regional electric vehicles market. In its Q1 2020 update, Tesla announced that it expects to increase the Model 3 production rate to approximately 4,000 per week at Gigafactory Shanghai by mid-2020.
Governments in Asia Pacific are looking to incentivize investments across the electric vehicle value chain and promote consumer demand for plug-in hybrid, battery, and other electric vehicles. The future could see governments in the developing region offering more toll discounts, free parking, priority lanes, charging stations near home, and tax waivers to electric vehicle owners. In addition, the implementation of urban and smart mobility strategies is anticipated to help expand the regional electric vehicles market. China and India could put a higher number of commercial electric vehicles such as electric bus into operation to deal with increased fuel cost, pollution, and other problems associated with the use of gasoline or diesel-powered vehicles.
The potential of electric vehicles in Asia Pacific looks impressive, if not strong. The projected exponential growth rate of the regional electric vehicles market could gain from growing efforts to ensure electric vehicle infrastructure development, ramp up electric mass mobility, and meet the dire need to reduce environmental concerns such as pollution.