Market Trends of APAC Electric Vehicle Industry
Passenger Car holds 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 internal combustion engine cars in the future and promoting the use of electricity on the roads to achieve the goal of a sustainable future.
In addition, with the policies for electric vehicles, many governments are providing tax exemptions and fiscal incentives for the sales 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 percent of new vehicle sales by 2030.
Furthermore, considering the future of electric vehicles with the ongoing transition and advancement in technology demands a completely innovative design and development approach of powertrain leads to high mileage, less maintenance, and great 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.
The electric vehicle market is expected to grow in the following 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 global automotive market. According to the CAAM, in 2023, China’s auto production and sales hit new record highs. New energy vehicle sales volume maintained rapid growth and exceeded 9 million units, with a market share of 30%.
Moreover, 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 and various other projects will need various construction equipment and boost the market 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 it is aiming to become one of the world's top five automakers.
Furthermore, with the growth of electric vehicles, companies and governments are making huge investments in the expansion of charging infrastructure. For instance, 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.
In addition, China is the largest charging infrastructure network in the world. On the policy front, in June 2023, the General Office of the State Council issued guiding opinions on the further establishment of a high-quality charging infrastructure system.
Thus, contributing to the market growth.
