Electric Vehicle Wave Is On In SE Asia
Indonesia, the world’s top miner of nickel - an essential element of EV battery, is developing its own EV industry and planning to become a global EV battery production hub. KrAsia reported that the country is set to begin EV domestic production by 2021 or 2022 with the goal of exporting 200,000 EVs by 2025, or about 20% of the estimated total exported cars.
On the other hand, as Indonesian government speeds up the development of battery-powered EVs, rolling out initiatives to boost the industry and welcoming more investment and mining companies, it must also deal with the waste and environmental impact that a robust EV industry generates.
Singapore introduced the Singapore Green Plan 2030 in February 2021, with the aim of building 60,000 EV charging points at public car parks and private premises by 2030, more than double the target of 28,000 set last year. This move has enthused EV charging providers.
As a top green country in Asia, Singapore aims to phase out petrol and diesel vehicles, and have all vehicles run on cleaner energy by 2040, making a bigger bet on electric cars as part of its efforts to cut greenhouse gases and fight climate change.
There is no doubt that Southeast Asia is showing promising signs of future EV market growth and development, including government support, increasing purchase incentives, and infrastructure development. The electric vehicle market in Southeast Asia is anticipated to register a CAGR of about 10% during the period of 2020 to 2025, according to Mordor Intelligence.
Despite the positive momentum in the EV market in Southeast Asia, significant challenges remain. The market is expanding at a fast rate, which will require more charging infrastructure to meet the market need. Also, both EV availability and government incentives are still in their infancy, and the market will still require significant investment and government subsidies to further develop.
Source: Pixabay
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