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EV policy among Asian countries: Is it working or not?

EV policy among Asian countries: Is it working or not?

Several Asian nations have openly supported the roll-out of electric vehicles (EVs) by implementing at least one EV policy.

Several Asian nations have openly supported the roll-out of electric vehicles (EVs) by implementing at least one EV policy. Some are at the onset, and others who have done it prior are setting an example for other countries to follow suit.

Mainly, most of the countries aim to meet their climate change goals. And yet, the apparent developments in certain areas within the EV industry have proved to be much more than expected.

“A favorable environment for electric vehicle manufacture exists in several Asian nations due to global initiatives to diversify supply chains and the push to adopt green technology,”

said Danielle Fallin, Research Associate and Program Manager of the Southeast Asia Program, which promotes linkages between the United States and Southeast Asia.

Movements across Asia

Governments in Asia came up with initiatives such as policies that could alter the adoption of EVs. Such covers from manufacturing to the roll-out of the said vehicles.

For example, Japan is slated to subsidize EVs and may ban the sale of internal combustion engine vehicles (ICEVs) by mid-2030. Such a move can help the country reach net carbon neutrality by 2050.

On the other hand, China plans to ban the sale of ICEVs entirely by 2035. The Chinese government has mandated that all newly produced cars sold within the country must use “new energy” by the same year. Half of them should be hybrids, while the other half must be electric, fuel cells, or plug-in hybrids.

To lessen carbon dioxide production, Indonesian President Joko Widodo issued a regulation that promotes the use of road cars powered by batteries as per the East Asia forum. Said country also aims to become an EV hub by offering tax incentives.

As for Thailand, they plan to progress the production of battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV).  It aims to reach a total of 1.2 million vehicles in use by 2036.

In turn, good tax treatment for EVs was awarded to thirteen different companies. Thailand released an EV strategy in March 2020. It intends to produce 250,000 EVs and build an ASEAN EV hub by 2025.

India recently announced government policies to promote EVs and charging station plans to spur growth in the nascent EV market. Such can aid on India’s concern on pollution in several places with bad air quality index.

The said country also plans to cascade an EV policy offering incentives for adopting charging infrastructure and bolstering EV sales. It aims to install 2.5 million charging stations around the country by 2030. Several private companies have announced their desire to invest in the said effort.

Many other Asian nations are also making significant changes in their EV policy to increase the use of EVs to reduce carbon dioxide production and improve urban air quality

For example, South Korea has a government program offering subsidies for EV purchases. They have invested in the construction of charging infrastructure, entering a promising era of EV support.

Taiwan offers subsidies and tax breaks to promote EV use and the development of charging posts. These are part of its commitment to EV efforts.  Hong Kong’s government has also adopted a policy to promote the use of EVs, in line with their efforts to reduce pollution and improve the efficiency of the city’s power grid. 

Exploring the ASEAN initiative

The Association of Southeast Asian Nations (ASEAN) member countries are making significant strides to usher EV support.  They are working on realizing the “Kuala Lumpur ASEAN Transport Strategic Plan for 2016 to 2025.”

Said plan leans on a greener and more sustainable transportation system. As such, some of the policymakers in the region lean towards the offering of incentives that can increase the sales of EVs.

The ASEAN has rendered goals that focus on leveraging EV support in the region. By 2025, the Indonesian government wants one million EVs to be on the road, a significant milestone in entering an era of electric mobility.

Thailand is also planning one million EVs. Such is a clear indication of their EV efforts to reduce emissions and promote sustainability. Singapore has also set a goal to phase out ICEVs by 2040.

The Malaysian government aims to have 50,000 EVs on the road by 2030. Such shows their growing interest in supporting EVs and their efforts to transition towards sustainable transportation.

Meanwhile, the Philippine government plans to have at least 200,000 EVs on the road by 2030. It signifies their support to the global shift towards electric mobility.

“If there is no energy shift, the transport sector, the second-largest after manufacturing, will continue to use oil. Luckily, there are ways to green the sector. ASEAN member states are beginning electric mobility in addition to biofuel mandates,”

said Mr. Muhammad Rizki Kresnawan,  technical officer of modeling and policy planning at the ASEAN Centre for Energy.

Governments in Asia and the EV industry

Policies render the localization of EVs by providing certain leeways to prospective consumers. Governments can also restrict EV manufacturers’ operations, but, they, too, can promote adoption. Subsidies and privileges increase the amicability of EVs based on what suits a particular country.

EV adoption due to the changes in EV policy can open up new job opportunities in several industries. From assembling the vehicles to making parts of EVs, there is a need for a lot of manpower which translates to jobs in the EV industry.

With the rise in the number of EVs and the advent of an EV policy in several Asian countries, a thorough charging infrastructure is also required to facilitate the wide deployment of EVs. As EV adoption rises, so will the demand for cutting-edge battery technology.

Not to mention, countries such as China, which has a stock of raw resources for EV batteries, can increase revenue for supply sources in Asia. 

EV batteries have expensive elements. Hence, getting materials from Asian suppliers compared to getting them overseas may affect the costs of EVs.

When deciding to procure EV batteries, it’s a must to consider the local EV industry and related EV policy. Buying locally can save money on shipping and storage. It can also boost the regional economy.

Many countries have made changes to their EV policy to promote the use of EVs as sustainable transportation. EVs are crucial to the automotive supply chain due to their lower carbon emissions.

Government EV policies, such as subsidies, tax incentives, and charging station installation, have spurred Asia’s EV market and supply chain. These laws have helped the EV business thrive in select Asian regions.

Despite the favorable changes in EV policy,  a fraction of the Asian population still chooses not to use EVs. The high cost of EV batteries is a significant reason behind such a scenario.

People may also become hesitant to switch to EVs because of the insufficient infrastructure for charging and other EV-related services in their relative countries. Such makes it inconvenient to utilize EVs on a regular basis.

The EV policies made by several Asian nations have the potential to pave the way in increasing the presence of EVs. Wherein, the implementation of a pro-EV policy across the regions is now showing promising impacts.

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