(PharmaNewsWire.Com, July 27, 2022 ) According to a new market research report titled “Asia-Pacific Electric Vehicle Market by Vehicle Type (Passenger Vehicle, LCV, HCV, Two-wheeler, e-Scooters & Bikes); Propulsion Type (BEV, FCEV, HEV); Power Output (Less Than 100kW, 100 kW to 250 kW); End Use, Charging Standard, and Country,” published by Meticulous Research®, electric vehicle market in Asia-Pacific is expected to record a CAGR of 33.1% from 2021–2028 to reach $1,927.04 billion by 2028. By volume, this market is expected to grow at a CAGR of 25.9% from 2021–2028 to reach 274.19 million units by 2028.
The adoption of electric vehicles is on the rise due to growing concerns regarding the negative environmental effects of vehicular emissions, supportive government initiatives to decarbonize transportation, and increasing efforts by major automotive OEMs to reduce greenhouse gas emissions and transform their product line-ups into green and clean environment-friendly vehicles.
Impact of COVID-19 on the Asia-Pacific Electric Vehicle Market
The outbreak of the COVID-19 pandemic severely impacted several sectors, including the automotive sector, with major manufacturers shutting down their operations completely or operating at reduced capacities following the directives issued by their respective governments.
The automotive industry has been severely affected by complete lockdowns and quarantines. Uncertainty regarding the duration of the lockdown and supply-chain disruptions made it more difficult for industry players to anticipate the recovery of the industry. This crisis caused structural shifts that had significant implications on the market.
According to International Council on Clean Transportation (ICCT), in August 2020, the Chinese electric vehicle market share was high throughout 2019, but sales have slightly decreased to around 4.2% during the first half of 2020. This change has occurred due to the reduction in purchase premiums for electric vehicles in China. Simultaneously, electric vehicle sales targets for manufacturers were tightened, and strong non-fiscal incentives, such as license plates and registration privileges for electric vehicles, continue to be in place in China.
Moreover, amidst the pandemic, the Chinese government announced to phase-out conventional combustion engine vehicles by 2035 and planned numerous strategies to achieve its target. For instance, the Guangzhou government announced a subsidy of $1,537 for new energy vehicles sold between March and December 2020. The government committed to increasing its investment in charging infrastructure. The State grid planned to build 78,000 charging stations at an average cost of $420 million in 2020. These strategies and targets set by the Chinese government are expected to support the EV market growth in the coming years.
Asia-Pacific Electric Vehicle Market Overview:
The overall electric vehicle market in Asia-Pacific region is segmented based on vehicle type, propulsion type, power output, charging standard, end use, and country. The study also evaluates industry competitors and analyzes the market at the country level.
Based on vehicle type, the passenger vehicles segment is expected to account for the largest share of the overall Asia-Pacific electric vehicle market in 2021. The large market share of this segment is attributed to the increasing favorable government policies and subsidies for promoting the adoption of electric vehicles, growing awareness regarding the role of electric vehicles in reducing emissions, increasing fuel prices, and proactive participation by automotive OEMs in producing electric passenger vehicles. Electric passenger vehicles are gaining popularity among consumers. Passenger vehicles are the most common mode of conveyance as they offer safety, reliability, and comfort due to their low weight and spacious designs. Automobile manufacturers are pooling their R&D resources for designing and developing electric passenger vehicles for reducing emissions, improving design flexibility, achieving higher speed-to-weight ratios, and allowing for longer travel ranges on a single charge.
Based on propulsion type, the battery electric vehicles segment is expected to account for the largest share of the Asia-Pacific electric vehicle market in 2021. The large market share of this segment is attributed to the increasingly stringent emission standards, rising demand for increased fuel efficiency, growing demand for zero-emission vehicles, and a continuous reduction in battery prices.
Battery electric vehicles are largely used as private vehicles, industrial vehicles, and public transport. These EVs have fewer moving parts than conventional vehicles. Innovations in electric powertrains, such as improvements in power and torque, create new opportunities for utilizing battery electric vehicles (BEV) in diverse environments.
Based on power output, the less than 100 kW segment is expected to account for the largest share of the Asia-Pacific electric vehicles market in 2021. The large market share of this segment is attributed to the increasing adoption of electric scooters and mopeds, increasing investments by government authorities in the development of EV charging infrastructure, and favorable policies, incentives, and subsidies introduced by several state governments.
In the automotive industry, power output refers to the amount of mechanical energy output generated by the electric vehicle motor within a given timeframe. Also, the power output impacts the vehicles’ acceleration, tractability, and ability to climb uphill. The adoption of electric mopeds & scooters is growing exponentially due to their eco-friendly nature, strict government regulations for carbon emissions, and growing use of e-scooters for micromobility services.
Based on end use, the private use segment is expected to account for the largest share of the Asia-Pacific electric vehicle market in 2021. The large market share of this segment is attributed to the growing awareness regarding the hazards associated with greenhouse gas emissions and environmental pollution, stringent emission norms, and demand for premium EVs among consumers.
The electric vehicles market has taken a huge leap forward in the past decade. Today, consumers are focused on better fuel efficiency, more power, and reduced CO2 emissions and are thereby adopting EVs for personal use. Also, supportive government incentives to promote sales and manufacturing of EVs, tax rebates, and the decline in battery costs are further driving the adoption of EVs among consumers for private use.
Based on country, China is expected to account for the largest share of the Asia-Pacific electric vehicle market in 2021. The adoption of EVs is growing significantly in China due to the extensive government support and expansion in charging infrastructure. In 2020, China recorded sales of 1.3 million EVs, attributing to an increase in the adoption of the Tesla Model 3 and the Hongguang Mini. Increasing government efforts to push EV sales to up to 25% of the car sales by 2025 has driven the market growth considerably in China. To achieve the set target, the government had extended the tax exemptions for purchasing an EV by 2023. Thus, considering the above factors, investors have started investing in this market.
The key players operating in Asia-Pacific electric vehicles market are TATA Motors Limited (India), BYD Company Ltd. (China), Honda Motor Co., Ltd. (Japan), Nissan Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Yamaha Motor Co., Ltd. (Japan), Hero MotoCorp Ltd. (India), Ather Energy Pvt. Ltd. (India), Geely Automobile Holdings Limited (China), and XPeng Inc. (China) among others.
Asia-Pacific Electric Vehicle Market, by Vehicle Type
Passenger Vehicle Two-wheeler Light Commercial Vehicles E-Scooters & Bikes Heavy Commercial Vehicles Asia-Pacific Electric Vehicle Market, by Propulsion Type
Battery Electric Vehicles Hybrid Electric Vehicles Pure Hybrid Electric Vehicles Plug-In Hybrid Electric Vehicles Fuel Cell Electric Vehicles Asia-Pacific Electric Vehicle Market, by Power Output
Less Than 100 KW 100 KW to 250 KW More Than 250 KW Asia-Pacific Electric Vehicle Market, by End Use
Private Use Commercial Use Shared Mobility Micromobility Public Transport Industrial Use Asia-Pacific Electric Vehicle Market, by Country
China Japan South Korea India Singapore Thailand Philippines Malaysia Australia New Zealand Taiwan
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