13 oct 21

Global Fleet Survey: APAC stuck between ambition and reality

APAC corporate fleets have received an increasing level of global attention over the past few years, essentially because of the region’s growth, reflected in its contribution to corporate P&Ls.

Key indicators such as life expectancy, GDP and GNI per capita continue to rise, but so do CO2 emissions: industrial expansion and a growing middle class require more energy, which is essentially delivered by carbon fuels. The car per capita ratio remains low – except for highly industrialised countries – whilst the need for mobility increases.   

Across the region, different and uncoordinated trends define APAC’s push for sustainability. The most noticeable 2021 changes are:

  • China has, for several years already, incentivised electrification, both from a consumer and manufacturer perspective. Recently however, China has launched a comprehensive initiative in favour of hydrogen, reducing/finetuning the incentive amounts for EV acquisition and production.
  • Indonesia holds one of the largest global reserves of nickel and has recently allowed for access to these reserves to foreign investors. Especially South-Korean manufacturers have seized the opportunity and are now building EV-battery plants as well as EV-car manufacturing facilities in the proximity of the nickel mines.
  • Japan has announced that by 2035, all passenger car sales will be electric; this includes however HEV which unveils a fundamental difference between the country’s main OEM, Toyota, and the other OEMs. Toyota’s strategy is focused on a transition from HEV to hydrogen, whereas the other manufacturers prepare for electrification.

Overall, the combination of GHG accounting requirements and the lack of a regional sustainability strategy adds on complexity to the existing fleet management challenges in APAC.

For more on fleet and mobility management benchmarking throughout the world, download our latest free E-Book about the 2021 Global Fleet Survey, or discover the full results.

Image: Shutterstock

Authored by: Yves Helven