Market Size of ASEAN Electric Vehicle Industry
|2019 - 2029
|Base Year For Estimation
|Market Size (2024)
|USD 1.14 Billion
|Market Size (2029)
|USD 4.70 Billion
|CAGR (2024 - 2029)
*Disclaimer: Major Players sorted in no particular order
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ASEAN EV Market Analysis
The ASEAN Electric Vehicle Market size is estimated at USD 1.14 billion in 2024, and is expected to reach USD 4.70 billion by 2029, growing at a CAGR of 32.73% during the forecast period (2024-2029).
As a result of the COVID-19 pandemic, manufacturing activities ceased for several months in the first half of 2020. Also, the disrupted supply chain and the shortage of chips in 2021 hurt the growth of the market studied. However, the automotive industry is now recovering from the losses and paving the way to introduce quality products to cater to the rising demand from consumers across the country. The automotive industry witnessed significant growth in terms of production in 2021, which is likely to increase the demand for electric vehicles across the country.
Government policies to support the growth of electric vehicles and plans to enlarge the electric vehicle charging infrastructure are expected to remain prominent market drivers during the forecast period. Several governments across the ASEAN region have announced plans to have a certain portion of their new vehicle sales electrified in the coming few years.
Governments play a vital role in encouraging the expansion of electric vehicle charging infrastructure. As ASEAN governments push for further vehicle electrification, there must be usage and purchase incentives that either lower the overall cost of ownership or make driving electric vehicles more convenient for customers. Although only a few incentives for purchasing electric vehicles or charging infrastructure are present in the Philippines, the country holds 5% and 4% of worldwide nickel and cobalt reserves, respectively, and has enormous potential to participate more actively in the EV battery production value chain.
EVs are becoming more popular in Indonesia, owing to ride-hailing companies like Grab, which announced a cooperation with the local power supplier PLN to expand its fleet charging infrastructure. In the coming years, public transportation operators such as Transjakarta want to increase their electric bus fleet to 10,000 units. Such instances are signs of the growth of the electric vehicle market across the region.