One would be living under a rock to not notice the recent surge in the electric vehicles space. Public market investors seem to really love the EV space.
Tesla, the poster child for EV, is a trillion dollar company. Yes, trillion.
Rivian, another newly minted listed company, debuted at over US$100 billion. Between these two, their market capitalization is far more than traditional players like Ford, General Motors and the other top incumbents alike.
Whether this is warranted, or a sign of irrational market exuberance is the topic for another day. However, what can not be denied is that the market need for electric vehicles is truly present.
While the broader automobile sector is on track for one of its worst financial years, EV sales are expected to grow 98% in 2021 on a base of roughly 3.2 million cars.
What is sparking this need in SEA
The climate change crisis has reached a point where it cannot be ignored any further.
Vehicle pollution is obviously a major contributor to this. The US and China were expectedly the first to take action, given their frankly astonishing contributions to vehicle pollution. However, Southeast Asia is no stranger to this revolution, being the 5th largest automotive market in the world.
Thankfully, the urgency to take actions on this front are now in place from all three major ecosystem participants in the region. This is referring to the governments, automotive manufacturers and end consumers.
Foundation laid by the government
Governments are doing their bit to lay the foundation for adoption in the region.
As billions of dollars flow into the sector, governments have also announced financial schemes to the development of the entire EV ecosystem.
Singapore, often the frontrunner for new green initiatives, has adopted a new plan for 2030. The government has implemented the EV Early Adoption Incentive, which offers consumers purchasing fully electric cars a tax rebate of 45% for the additional registration fee (ARF), which is capped at SGD 20,000.
The Vehicle Emission Scheme also offers EV buyers an additional rebate of up to SGD 25,000 depending on the EV model.
Across the border, Malaysia has geared up to accelerate EV adoption. The Malaysia Automotive, Robotics and IoT Institute (MARii) is looking at a new EV policy that will include direct incentives for EV purchases such as rebates on road tax, toll, parking and charging installation.
Thailand is also not lagging to promote its local EV industry, it has lowered the vehicle excise tax from the usual 10% to 30% for conventional ICEVs to between 2% and 10% for domestically produced EVs.
Apart from incentives to entice automotive investors, such as corporate income tax exemptions of up to 15 years and financial incentives for investments in R&D, innovation, or human resources development, the government has also committed to devoting parts of its budget to the purchase of EVs.
The old guys on the block finally making inroads
On the producer end, all major players have announced plans of some sort or the other to make inroads in the space.
A lot of this is focused on SEA. Indonesia, for example, signed a recent agreement with LG to produce lithium batteries for EVs, and also hinted at a collaboration in the works with Tesla to develop their industry.
Meanwhile, in Thailand, Toyota and Nissan are spending millions to set up plants and establish them as their export hub for EVs.
It finally makes sense for the consumer
Let’s just say that despite wanting what’s best for the environment, consumers usually prioritize what’s economical to them. Call that sensible or selfish, it’s mostly true.
This has been the case for EV adoption for most of the last decade. The consumer perception has been that EVs are reserved for the rich, and those that have the luxury to care about the environment.
The main deterrent was high battery prices. However, with the recent take-off of the industry, the tables have now turned.
Total cost of ownership has reduced drastically in the last decade, as the battery prices have come down more than 90% from USD 1,000 per unit to USD 100 per unit.
The result?
The cost to buy an EV is close to being at par with mid-range fossil fuel empowered vehicles in SEA. Keep in mind, places like Singapore have anyway been notoriously expensive when it comes to owning traditional vehicles.
Apart from price, consumer preferences in the region have anyway changed over time. With rising crude prices, consumers are looking for alternatives. Southeast Asia has anyway been notoriously expensive Testimonials of early users allay consumer fears about battery and EV usage issues.
Combined with the costs coming down, have made consumers receptive to owning an EV.
How the SEA start-up ecosystem is responding
Plenty of promising EV start-ups are flourishing in the region.
VinFast, a Vietnamese company founded in 2017 and a subsidiary of conglomerate VinGroup, is ramping up EV sales. It expects to do over 15,000 EV sales in 2022, despite the global chip shortage.
Neuron Mobility and Beam, on the other hand, have been pioneering the rental e-scooter wave in the broader region. Offering micro-mobility solutions using electric vehicles is never an easy feat, but they have leveraged the developing infrastructure successfully.
With EV at forefront, the mobility industry in Southeast Asia is poised to see a wave of players attack the space, be it new transportation concepts, freight management, or mobility as a service offerings.
While there is a long way to go, it is clear that the future of EV in Southeast Asia is truly electrifying.
One would be living under a rock to not notice the recent surge in the electric vehicles space. Public market investors seem to really love the EV space.
Tesla, the poster child for EV, is a trillion dollar company. Yes, trillion.
Rivian, another newly minted listed company, debuted at over US$100 billion. Between these two, their market capitalization is far more than traditional players like Ford, General Motors and the other top incumbents alike.
Whether this is warranted, or a sign of irrational market exuberance is the topic for another day. However, what can not be denied is that the market need for electric vehicles is truly present.
While the broader automobile sector is on track for one of its worst financial years, EV sales are expected to grow 98% in 2021 on a base of roughly 3.2 million cars.
What is sparking this need in SEA
The climate change crisis has reached a point where it cannot be ignored any further.
Vehicle pollution is obviously a major contributor to this. The US and China were expectedly the first to take action, given their frankly astonishing contributions to vehicle pollution. However, Southeast Asia is no stranger to this revolution, being the 5th largest automotive market in the world.
Thankfully, the urgency to take actions on this front are now in place from all three major ecosystem participants in the region. This is referring to the governments, automotive manufacturers and end consumers.
Foundation laid by the government
Governments are doing their bit to lay the foundation for adoption in the region.
As billions of dollars flow into the sector, governments have also announced financial schemes to the development of the entire EV ecosystem.
Singapore, often the frontrunner for new green initiatives, has adopted a new plan for 2030. The government has implemented the EV Early Adoption Incentive, which offers consumers purchasing fully electric cars a tax rebate of 45% for the additional registration fee (ARF), which is capped at SGD 20,000.
The Vehicle Emission Scheme also offers EV buyers an additional rebate of up to SGD 25,000 depending on the EV model.
Across the border, Malaysia has geared up to accelerate EV adoption. The Malaysia Automotive, Robotics and IoT Institute (MARii) is looking at a new EV policy that will include direct incentives for EV purchases such as rebates on road tax, toll, parking and charging installation.
Thailand is also not lagging to promote its local EV industry, it has lowered the vehicle excise tax from the usual 10% to 30% for conventional ICEVs to between 2% and 10% for domestically produced EVs.
Apart from incentives to entice automotive investors, such as corporate income tax exemptions of up to 15 years and financial incentives for investments in R&D, innovation, or human resources development, the government has also committed to devoting parts of its budget to the purchase of EVs.
The old guys on the block finally making inroads
On the producer end, all major players have announced plans of some sort or the other to make inroads in the space.
One would be living under a rock to not notice the recent surge in the electric vehicles space. Public market investors seem to really love the EV space.
Tesla, the poster child for EV, is a trillion dollar company. Yes, trillion.
Rivian, another newly minted listed company, debuted at over US$100 billion. Between these two, their market capitalization is far more than traditional players like Ford, General Motors and the other top incumbents alike.
Whether this is warranted, or a sign of irrational market exuberance is the topic for another day. However, what can not be denied is that the market need for electric vehicles is truly present.
While the broader automobile sector is on track for one of its worst financial years, EV sales are expected to grow 98% in 2021 on a base of roughly 3.2 million cars.
What is sparking this need in SEA
The climate change crisis has reached a point where it cannot be ignored any further.
Vehicle pollution is obviously a major contributor to this. The US and China were expectedly the first to take action, given their frankly astonishing contributions to vehicle pollution. However, Southeast Asia is no stranger to this revolution, being the 5th largest automotive market in the world.
Thankfully, the urgency to take actions on this front are now in place from all three major ecosystem participants in the region. This is referring to the governments, automotive manufacturers and end consumers.
Foundation laid by the government
Governments are doing their bit to lay the foundation for adoption in the region.
As billions of dollars flow into the sector, governments have also announced financial schemes to the development of the entire EV ecosystem.
Singapore, often the frontrunner for new green initiatives, has adopted a new plan for 2030. The government has implemented the EV Early Adoption Incentive, which offers consumers purchasing fully electric cars a tax rebate of 45% for the additional registration fee (ARF), which is capped at SGD 20,000.
The Vehicle Emission Scheme also offers EV buyers an additional rebate of up to SGD 25,000 depending on the EV model.
Across the border, Malaysia has geared up to accelerate EV adoption. The Malaysia Automotive, Robotics and IoT Institute (MARii) is looking at a new EV policy that will include direct incentives for EV purchases such as rebates on road tax, toll, parking and charging installation.
Thailand is also not lagging to promote its local EV industry, it has lowered the vehicle excise tax from the usual 10% to 30% for conventional ICEVs to between 2% and 10% for domestically produced EVs.
Apart from incentives to entice automotive investors, such as corporate income tax exemptions of up to 15 years and financial incentives for investments in R&D, innovation, or human resources development, the government has also committed to devoting parts of its budget to the purchase of EVs.
The old guys on the block finally making inroads
On the producer end, all major players have announced plans of some sort or the other to make inroads in the space.
A lot of this is focused on SEA. Indonesia, for example, signed a recent agreement with LG to produce lithium batteries for EVs, and also hinted at a collaboration in the works with Tesla to develop their industry.
Meanwhile, in Thailand, Toyota and Nissan are spending millions to set up plants and establish them as their export hub for EVs.
It finally makes sense for the consumer
Let’s just say that despite wanting what’s best for the environment, consumers usually prioritize what’s economical to them. Call that sensible or selfish, it’s mostly true.
This has been the case for EV adoption for most of the last decade. The consumer perception has been that EVs are reserved for the rich, and those that have the luxury to care about the environment.
The main deterrent was high battery prices. However, with the recent take-off of the industry, the tables have now turned.
Total cost of ownership has reduced drastically in the last decade, as the battery prices have come down more than 90% from USD 1,000 per unit to USD 100 per unit.
The result?
The cost to buy an EV is close to being at par with mid-range fossil fuel empowered vehicles in SEA. Keep in mind, places like Singapore have anyway been notoriously expensive when it comes to owning traditional vehicles.
Apart from price, consumer preferences in the region have anyway changed over time. With rising crude prices, consumers are looking for alternatives. Southeast Asia has anyway been notoriously expensive Testimonials of early users allay consumer fears about battery and EV usage issues.
Combined with the costs coming down, have made consumers receptive to owning an EV.
How the SEA start-up ecosystem is responding
Plenty of promising EV start-ups are flourishing in the region.
VinFast, a Vietnamese company founded in 2017 and a subsidiary of conglomerate VinGroup, is ramping up EV sales. It expects to do over 15,000 EV sales in 2022, despite the global chip shortage.
Neuron Mobility and Beam, on the other hand, have been pioneering the rental e-scooter wave in the broader region. Offering micro-mobility solutions using electric vehicles is never an easy feat, but they have leveraged the developing infrastructure successfully.
With EV at forefront, the mobility industry in Southeast Asia is poised to see a wave of players attack the space, be it new transportation concepts, freight management, or mobility as a service offerings.
While there is a long way to go, it is clear that the future of EV in Southeast Asia is truly electrifying.
One would be living under a rock to not notice the recent surge in the electric vehicles space. Public market investors seem to really love the EV space.
Tesla, the poster child for EV, is a trillion dollar company. Yes, trillion.
Rivian, another newly minted listed company, debuted at over US$100 billion. Between these two, their market capitalization is far more than traditional players like Ford, General Motors and the other top incumbents alike.
Whether this is warranted, or a sign of irrational market exuberance is the topic for another day. However, what can not be denied is that the market need for electric vehicles is truly present.
While the broader automobile sector is on track for one of its worst financial years, EV sales are expected to grow 98% in 2021 on a base of roughly 3.2 million cars.
What is sparking this need in SEA
The climate change crisis has reached a point where it cannot be ignored any further.
Vehicle pollution is obviously a major contributor to this. The US and China were expectedly the first to take action, given their frankly astonishing contributions to vehicle pollution. However, Southeast Asia is no stranger to this revolution, being the 5th largest automotive market in the world.
Thankfully, the urgency to take actions on this front are now in place from all three major ecosystem participants in the region. This is referring to the governments, automotive manufacturers and end consumers.
Foundation laid by the government
Governments are doing their bit to lay the foundation for adoption in the region.
As billions of dollars flow into the sector, governments have also announced financial schemes to the development of the entire EV ecosystem.
Singapore, often the frontrunner for new green initiatives, has adopted a new plan for 2030. The government has implemented the EV Early Adoption Incentive, which offers consumers purchasing fully electric cars a tax rebate of 45% for the additional registration fee (ARF), which is capped at SGD 20,000.
The Vehicle Emission Scheme also offers EV buyers an additional rebate of up to SGD 25,000 depending on the EV model.
Across the border, Malaysia has geared up to accelerate EV adoption. The Malaysia Automotive, Robotics and IoT Institute (MARii) is looking at a new EV policy that will include direct incentives for EV purchases such as rebates on road tax, toll, parking and charging installation.
Thailand is also not lagging to promote its local EV industry, it has lowered the vehicle excise tax from the usual 10% to 30% for conventional ICEVs to between 2% and 10% for domestically produced EVs.
Apart from incentives to entice automotive investors, such as corporate income tax exemptions of up to 15 years and financial incentives for investments in R&D, innovation, or human resources development, the government has also committed to devoting parts of its budget to the purchase of EVs.
The old guys on the block finally making inroads
On the producer end, all major players have announced plans of some sort or the other to make inroads in the space.
A lot of this is focused on SEA. Indonesia, for example, signed a recent agreement with LG to produce lithium batteries for EVs, and also hinted at a collaboration in the works with Tesla to develop their industry.
Meanwhile, in Thailand, Toyota and Nissan are spending millions to set up plants and establish them as their export hub for EVs.
It finally makes sense for the consumer
Let’s just say that despite wanting what’s best for the environment, consumers usually prioritize what’s economical to them. Call that sensible or selfish, it’s mostly true.
This has been the case for EV adoption for most of the last decade. The consumer perception has been that EVs are reserved for the rich, and those that have the luxury to care about the environment.
The main deterrent was high battery prices. However, with the recent take-off of the industry, the tables have now turned.
Total cost of ownership has reduced drastically in the last decade, as the battery prices have come down more than 90% from USD 1,000 per unit to USD 100 per unit.
The result?
The cost to buy an EV is close to being at par with mid-range fossil fuel empowered vehicles in SEA. Keep in mind, places like Singapore have anyway been notoriously expensive when it comes to owning traditional vehicles.
Apart from price, consumer preferences in the region have anyway changed over time. With rising crude prices, consumers are looking for alternatives. Southeast Asia has anyway been notoriously expensive Testimonials of early users allay consumer fears about battery and EV usage issues.
Combined with the costs coming down, have made consumers receptive to owning an EV.
How the SEA start-up ecosystem is responding
Plenty of promising EV start-ups are flourishing in the region.
VinFast, a Vietnamese company founded in 2017 and a subsidiary of conglomerate VinGroup, is ramping up EV sales. It expects to do over 15,000 EV sales in 2022, despite the global chip shortage.
Neuron Mobility and Beam, on the other hand, have been pioneering the rental e-scooter wave in the broader region. Offering micro-mobility solutions using electric vehicles is never an easy feat, but they have leveraged the developing infrastructure successfully.
With EV at forefront, the mobility industry in Southeast Asia is poised to see a wave of players attack the space, be it new transportation concepts, freight management, or mobility as a service offerings.
While there is a long way to go, it is clear that the future of EV in Southeast Asia is truly electrifying.