10 facts about electrification in Asia

Is it possible to electrify a car fleet in APAC? Is it expensive? Does it make sense? Here are a few facts about electrification in Asia.

1. 3 out of the top-5 best sold EV-brands globally are Asian

Tesla is heading Jan-to-June EV sales in 2022 (564K units), followed by Chinese companies BYD (324K units) and SAIC Motor (310K units). Volkswagen is 4^th (217K units) and Hyundai Motor Group has moved up to the 5^th spot (169K units)

1. The affordable EV is already a fact in Asia

Whilst many EVs retained in European car policies cost well over 40.000 Euro, cheaper alternatives are gaining popularity and accelerating EV transition in Asia. Tata offers EVs below $15.000 in India and China’s Wuling even offers its Hongguang small EV for about $5.000

These vehicles don’t offer much range, luxury or status, but they respond very well to the needs of the average Asian urban consumer

1. Incentives and subsidies are available in some Asian countries

Most Asian countries do not offer tax advantages or subsidies for EV vehicles or charging infrastructure. Nonetheless, more and more countries are following China’s example and offer some benefits. Thailand, for example, has recently issued a new incentive package for the EV industry

1. The importance of non-car centric mobility

Many Asian consumers are not able to buy a car (ICE or other) and use alternatives such as motorcycles and/or ride hailing for their urban transportation needs. The transition to EV in Asia will therefore happen first by electrifying 2-wheelers and 3-wheelers as well as the fleets of its ride-hailers

1. Electricity is not clean

Most of Asia’s electricity is generated by burning coal or gas. As a result, and from a GHG Accounting perspective, it does not make sense to drive EVs in APAC. Nonetheless, compared to ICE vehicles, EVs have at least the potential to become cleaner, and certainly reduce pollution in Asia’s mega-cities

1. Electrification is highly controversial in Asia

Toyota is APAC’s most important manufacturer and has been reluctant to join the EV band wagon. Toyota’s chairman has repeated that electricity is not clean, and that Asia’s grid is not ready to charge millions of EVs. As a result, Toyota has continued producing hybrid and promoting hydrogen

1. The Korean and Chinese EV brands are taking over

The Japanese OEMs are still important, but their absence in the EV ecosystem has made space for other OEMs, most of them Chinese or Korean. Hyundai, KIA have already become mainstream brands across the globe, but it’s time to welcome BYD, SAIC, Geely, XPENG and AIWAYS, amongst others, to our EV supply chain

1. It’s time to learn the names of Asian charger manufacturers

With an expected CAGR of 30.8% and geared to reach revenues up to $70 billion by 2029, APAC charging infrastructure manufacturers are about to play a major role in the global supply chain. It’s time to list up some names that will become more familiar over the next years: AoNeng, Wanbang Xingxing, Magenta, Delta Electronics, XPeng, Tata Power

1. Investments in renewable energy are surging in Asia

After Taiwan’s success story and supported by Asia’s desire to become independent from oil and gas import, the renewable energy industry has become a major focus for investors, financiers and technology companies. A few more years before the transition will be covered by mainstream media, but it has already started and is ready for growth

1. Hydrogen is bigger than it is in the West

Toyota believes that hydrogen is the way forward and has invested significantly in research, production and infrastructure. China has successfully been promoting electrification and is now also doubling up on hydrogen. It’s a matter of a few years before fuel cell cars will become a viable alternative to ICE and EV in (some parts of) Asia