Electric vehicles (EVs) have been on a growth path, climbing in global sales and consumer demand. Asia is expected to lead the pack, with Southeast Asian marked as the likely hub for battery and parts manufacturing. South Korea is also reaping benefits from the market growth, while Mainland China's market players are anticipated to see strong export numbers soon.

This Mobility Paper will cover:

• Geo-economic headwinds dampen consumer demand
• South Korea and Japan face tariff uncertainties
• Rise of the Chinese players
• Aseanmarkets stay strong on EV
• What lies ahead: EV road bumps

Key Takeaways

• EV consumer demand shows signs of slowing down in US and Europe, but remains on a growth path in Asia, including Asean.
• Asean markets are developing regulatory frameworks to support the transition to e-mobility, including offering both cash and tax incentives import duty exemptions
• Market players in South Korea and Japan face uncertainty amidst US tariffs.
• EV demand is surging in Asean countries, fuelled by government incentives, increasing fuel costs, and environmental concerns.
• The stability of China's regulatory environment, compared to Europe and the US, plays a key role in its market growth.
• Export, too, has proven a critical business for most Chinese OEMs, with China's vehicle export volumes expected to register growth.
• Growing demand for EVs presents significant opportunities for the Asean region, particularly in manufacturing, investment, and technology development.
• Countries such as Thailand and Indonesia, which holds the world's largest global nickel reserve, are attracting foreign direct investment from global automakers and battery producers.
• Asian governments must support EV market growth with clear policies and coordinated efforts across the EV value chain, from raw materials to manufacturing and recycling.
• To overcome barriers and accelerate EV adoption, Asia should implement a multi-faceted strategy centred around robust government incentives, strategic infrastructure development, and market stimulation.

Contributing Editors

• Boni Sa, Director, Automotive Planning Solutions, S&P Global Mobility
• Jessada Thongpak, Senior Analyst, Light Vehicle Production Forecasting, ASEAN, S&P Global Mobility
• Bora Kim, Principal Research Analyst, South Korea Powertrain Forecast, S&P Global Mobility
• Oracha Sakunbunma, Senior Analyst, ASEAN Light Vehicle Sales Forecast, S&P Global Mobility
• Takafumi Fujii, Senior Analyst, Powertrain Sales Forecasting, Production & Design, S&P Global Mobility