Electric Vehicle (EV) sales are projected to almost double to 5.6 million in 2021. Across the globe, governments have begun to offer attractive incentives for consumers to make the switch from fossil fuel vehicles. EVs and other alternative energy transportation solutions have the potential to effect significant, positive change in combatting climate change. At InsightzClub, we set out to evaluate the current climate of EV uptake in South East Asia. Here’s what you need to know:
Consumers want EVs
Upstart automotive companies like Tesla have glamourized the ownership of an EV. Along with leveraging their now established brand name, they have spurred an industry-wide migration away from fossil fuel guzzling vehicles. Consumers too have become more informed of the effects of climate change and what they may do to reduce their carbon footprint. Among our respondents, 71% reported that there was a considerable chance of them purchasing an EV, with only 12% stating that they were unlikely to do so.
High costs a primary concern
More often than not, the cost of adopting a newer technology can be exorbitantly expensive. New entrants to the automotive industry with a greater emphasis on sustainability and alternative renewable fuel sources have instigated lightning-fast development in battery technology and electric motors. While costs are reducing year on year, EV adoption may still be out of reach for middle income households in SEA. This is a key issue to address, as 44% of participants reported that high costs of owning an EV was the predominant reason for which they were hesitant about purchasing one. Further, demand sentiments become more variable, where instead of a majority willing to purchase an EV in the next 5 years, 65% stated that they were unsure or unlikely to if EVs were more expensive than existing fossil fuel vehicles.
Government incentives Subsidies and other government programs to raise EV adoption rates will prove imperative in moving away from fossil fuels. Despite half of responses indicating some degree of awareness of government programs for purchasing EVs, it may be that existing incentives aren’t entirely known by consumers. In addition, initiatives to build EV infrastructure, particularly charging bays, will address consumer concerns, where 21% of our participants indicated that the lack of charging stations inhibited them from purchasing EVs.