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 andEurope, but remains on a growth path in Asia, includingAsean.
• Aseanmarkets are developing regulatory frameworks tosupport the transition to e-mobility, including offering bothcash and tax incentives import duty exemptions
• Market players in South Korea and Japan face uncertainty amidstUS tariffs.
• EV demand is surging inAseancountries, fuelled by governmentincentives, increasing fuel costs, and environmental concerns.
• The stability of China's regulatory environment, comparedto 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 opportunitiesfor theAseanregion, particularly in manufacturing,investment, and technology development.
• Countries such as Thailand and Indonesia, which holds theworld's largest global nickel reserve, are attracting foreign directinvestment from global automakers and battery producers.
• Asian governments must support EV market growth with clearpolicies and coordinated efforts across the EV value chain,from raw materials to manufacturing and recycling.
• To overcome barriers and accelerate EV adoption, Asia should implementa 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, ASEANS&P Global Mobility
• Bora Kim, Principal Research Analyst, South Korea Powertrain ForecastS&P Global Mobility
• OrachaSakunbunma,SeniorAnalyst, ASEAN Light Vehicle Sales Forecast S&P Global Mobility
• Takafumi Fujii Senior Analyst, Powertrain Sales Forecasting, Production & Design S&P Global Mobility