Asia-Pacific Electric Vehicle Market

Asia-Pacific Electric Vehicle Market Size (2024 to 2029)

The electric vehicle (EV) market in the Asia-Pacific region is expected to reach USD 162.9 billion in 2024 and reach USD 479.6 billion by 2029, growing at a compound annual growth rate CAGR of 24.10% during the forecast period from 2024 to 2029.

Electric vehicles (EVs) are a solution to the ever-increasing carbon emissions that hurt the atmosphere. The increase in technological advances has brought them close to common people. They have a higher fuel economy, fewer carbon emissions and maintenance, smooth operation, and reduced engine noise. Around 2.1 million electric vehicles (VE), including battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV), have been sold worldwide. Sales in the Asia-Pacific region accounted for 60.3% of the market.

MARKET DRIVERS

The growth of the electric vehicle market growth in Asia-Pacific is fuelled by growing concerns about rising levels of air pollution in the region and the growing demand for cars that use clean fuel. Growing environmental awareness and government support are expected to lead the Asia-Pacific electric vehicle market. The region's economy is reducing its dependence on expensive fossil fuels by promoting electric vehicles. China provides significant subsidies for electric vehicles, depending on the size of the battery. The growing environmental awareness among people is helping to sell these cars in the Asia-Pacific region. The increase in income levels and the increase in urbanization in the emerging countries of Asia Pacific are reliable engines of growth for the electric vehicle market. 

In emerging economies such as India and China, vehicle penetration is even lower than in developed countries. The desire to increase revenue and own a car will provide an opportunity for electric car companies in this country. Passenger car customers in significant economies, such as India and China, are very cost-sensitive. The Indian government plans to replace all cars with electric cars by 2030. In 2007, around 100 electric vehicles were sold worldwide, and this figure increased to one million in 2017 and 2 million units in 2018. Although the operating costs of electric vehicles are low (6 km per 1 kWh), the high cost of batteries makes them expensive for ordinary customers due to the increase in prepaid or exposure prices for electric vehicles. High prepaid costs for electric cars can slow sales in this region. 

MARKET RESTRAINTS

However, a fall in the prices of lithium-ion batteries in recent years is a positive signal for the Asia Pacific electric vehicle market.

REPORT COVERAGE:

This research report on the Asia-Pacific electric vehicle market has been segmented and sub-segmented into the following categories.

Asia-Pacific Electric Vehicle Market - By Vehicle:

• Passenger Vehicles
• Commercial Vehicles

Passenger cars registered the dominant share due to the strict government regulations and consumer awareness of fewer carbon emissions. Moreover, the commercial vehicle segment is likely to multiply in the foreseen period due to the increasing adoption of electric vehicles in public transportation in countries like Japan, etc.

Asia-Pacific Electric Vehicle Market - By Type:

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

The HEV and PHEV segments are supposed to register the highest revenue in the regional market in the coming years because of the increasing production units and benefits compared to the BEVs.

Asia-Pacific Electric Vehicle Market - By Vehicle Class:

• Mid-Priced
• Luxury

The mid-priced vehicles are anticipated to witness the highest demand in the coming years, owing to the launch of affordable electric vehicles by market giants in the area.

Asia-Pacific Electric Vehicle Market - By Country:

• India
• China
• Japan
• South Korea
• Australia
• New Zealand
• Thailand
• Malaysia
• Vietnam
• Philippines
• Indonesia
• Singapore
• Rest Of APAC

China accounts for more than 80% of electric vehicles, followed by Japan, South Korea, and others. India is expected to witness tremendous potential due to the government's drive towards electric vehicles. Australia and New Zealand are expected to experience a significant increase in the demand for electric vehicle charging stations and batteries due to the high demand for used electric vehicles in the region.  In the face of rapid urbanization, China decided to reduce polluting emissions from road transport vehicles. China is the largest manufacturer and consumer of electric cars in the world. The need in the local market is being supported by national sales objectives, favorable laws, support subsidies, and urban air quality objectives.

The Japan EV market has been growing consistently over the past few years and is predicted to register a healthy CAGR during the forecast period. The launch of innovative features with the latest technologies in the automobile industry is majorly promoting the demand for the market in this country. Growing disposable income in urban areas is also fuelling the growth rate of the market. Initiative steps by the government to promote electric vehicles in order to reduce carbon emissions are leveraging the demand for the market. Also, the presence of significant key players like Toyota, Hyundai, and Nissan, among others, is also surging the market growth rate.

The South Korean electric vehicle market is expected to have significant opportunities in the coming years. Collaboration between the key players and the tech companies in order to introduce highly advanced electric vehicles at affordable prices is one of the major factors for the market to grow in South Korea. In this country, some automotive companies offer incentives for customers, such as free charging for a certain period of time. This factor is also ascribed to boost the demand for the market.

The Singapore electric vehicle market size is growing at a robust pace during the forecast period with the availability of highly advanced infrastructure in urban areas. The well-planned urban infrastructure poses an ideal environment for electric vehicles for daily commuting. This is enhancing the growth rate of the market. The government authorities are planning to completely adopt electric vehicles by the end of 2040, a great initiative to promote cleaner energy vehicles.

KEY MARKET PLAYERS:

Companies that play a noteworthy role in the Asia-Pacific electric vehicle market include BYD Company Motors, BMW Group, Tesla, Nissan Motor Corporation, Volkswagen AG, Toyota Motor Corporation, General Motors, Energica Motor Company S.P.A., Daimler AG, and Ford Motor Company.