Electric vehicle market in Asia, to thrive in the next few years
20 Mar 20237 min read
Summary
- The Asian EV market is accelerating thanks to strong government incentives, robust manufacturing ecosystems and rich access to raw materials, positioning the region for rapid growth in the coming years.
- The region’s vertically‑integrated supply chains—from mining to battery production to vehicle assembly—are enabling Asian manufacturers to achieve lower unit costs and scale faster than many global competitors.
- While significant expansion is underway, especially across China and Southeast Asia, widespread adoption still depends on charging infrastructure growth and consumer‑cost parity with internal‑combustion vehicles.
The electric vehicle (EV) market in Asia is growing as governments push for more sustainable transportation options in automobile supply chain. This push for EVs aligns with global sustainability efforts to reduce dependence on fossil fuels and promote a cleaner environment at the midst of escalating climate change.
Subsidies, tax breaks, implementing zero-emission mandates, and investing in EV electric vehicle ecosystems have aided to possible market growth. According to Statista’s Mobility Market Outlook, the Asia Pacific EV market can grow around USD 207 billion by 2023,
This growth is in line with the global trend as the report by SCM Globe suggests. Electric car sales worldwide rose by more than 40% in 2020 compared to the previous year. Prior, the market was valued at $229 billion in 2021. There is expected growth to USD 777 billion by 2027.
Manufacturers of EVs
A key player in the EV market is China, which accounts for 60% of global EV exports. Notably, based on Industrial Guide Asia's round-up, many leading EV manufacturers are situated in the said country.
The Asian EV market is being boost by various policies and incentives. These are tax cuts, subsidies, and other forms of financial support.
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