24th March 2021 – We are delighted to announce the launch of our latest report, Full speed ahead: Supercharging electric mobility in Southeast Asia.
Despite the impact of the COVID-19 pandemic on global automotive sales, the journey to electrification remains on track. Across the globe, regulators and industry players alike recognise the rare opportunity that the transition to electric vehicles (EVs) presents for their economies to simultaneously advance their goals for economic growth and sustainable development.
Within Southeast Asia, the benefits of electrification are tangible and wide-ranging. Apart from enabling economies to meet their climate change commitments, reduce air pollution, and increase energy security, electrification also offers many opportunities along the value chain for economies with established automotive manufacturing hubs – such as Indonesia and Thailand – to extend their footprint in EV and battery production, and for economies with less developed automotive manufacturing capabilities to catch up with, or even leapfrog, industry players in more established automotive manufacturing hubs.
Key highlights
In this report, we will take a closer look at six key mobility markets in Southeast Asia – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam – and explore five different enablers that we believe are crucial in enabling them to realise the full potential benefits of electrification:
Total cost of ownership
To offset the disproportionately high purchase value and low resale value of EVs, Southeast Asian economies will need to introduce new forms of financing instruments, and increase price competitiveness through higher vehicle utilisation.
Battery range and life
Consumer education and ownership experience will be key to addressing range anxiety, which continues to be one of the top concerns hindering greater EV adoption across both private and commercial use cases in Southeast Asia.
Charging networks
To increase the return on investment, Southeast Asian economies should consider the implementation of demand-optimised location prioritisation for public charging facilities, and introduce digital solutions and load-shifting incentives for consumers.
Regulatory environment
Apart from financial incentives, governments in Southeast Asia could also consider introducing other usage incentives to drive EV adoption, providing greater clarity on the relevant policy frameworks, and harmonising fragmented governance structures.
Value chain potential
Given the automotive value chain’s importance in driving economic competitiveness and job creation in many Southeast Asian markets, there is the need for more concerted efforts to provide a differentiated mix of push-pull incentives for localisation, and a more cohesive integration of value chain stages with existing capabilities from adjacent sectors, such as raw material sourcing, manufacturing, and research and development (R&D) talent.
Download the report
