Automobiles emit heavy amounts of greenhouse gases,
which leads to air pollution. This, in turn, raises the overall temperature and
results in climate change. In addition, the toxins in vehicle exhaust are also
harmful to humans, as these cause severe diseases, such as lung cancer and
chronic obstructive pulmonary disease (COPD). Therefore, to limit carbon
emissions and make the world greener, governments across the world are banning
fossil fuel-run vehicles and offering incentives and other forms of financial
support for the manufacturing and purchase of electric automobiles, including
those classified as low-speed electric vehicles (LSEV). As the need to reduce
air pollution is especially dire in Asia-Pacific (APAC), the region is
witnessing rapid adoption of LSEVs.
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| APAC LSEV Market |
By 2025, the APAC LSEV Market is expected to
witness a sale of 71.8 million units, which would be an increase at a CAGR of 6.6%
from 2018. Among two-, three-, and four-wheelers, two-wheelers have been the
most popular LSEVs up till now, and the situation is expected to be the same
through 2018–2025. The major factor responsible for this is their
affordability, compared to larger automobiles. Battery costs account for a
major portion of electric two-wheelers’ purchase price, and as the component,
specifically lithium-ion (Li-ion) battery, is becoming cheaper, the sale of
such vehicles is also rising. Technological advancements and a rapid shift to
Li-ion batteries from sealed lead–acid (SLA) variants are also helping in this
regard.
Similarly, electricity-driven four-wheelers, primarily
micro-cars, are also gaining rapid popularity across the region. China and
India are witnessing swift urbanization, which is bringing more vehicles on the
roads. This is leading to traffic congestion, which often takes the form of
2–3-mile long traffic jams. As per the World Bank, already 57% of the Chinese population
was living in urban areas in 2016. In order to reduce traffic congestion as
well as pollution levels, e-micro-cars are being promoted by regional
governments, as they are quite compact and lead to no emissions.
Three-wheelers are also quite significant in India,
China, and Thailand, from the point of mass transit. As not everyone can afford
a scooter, motorcycle or car in these countries, a large number of people still
commute by auto-rickshaws, which also leads to air pollution and traffic
congestion. As electric three-wheelers are more expensive than conventional
models, the government as well as manufacturers are increasing their
investments to make them cheaper. For instance, subsidies in the range of $370
(INR 25,000)–$910 (INR 61,000) is offered in India under the Faster Adoption
and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme.
Within APAC, China witnessed the highest adoption of
LSEVs in 2017, due to the earliest introduction of the concept in the country
and government support. During the forecast period, the APAC LSEV market growth in India would be quite significant. This would be primarily due to
the swiftly rising prices of gasoline, which would help shift the inclination
of a large number of people toward electric vehicles, primarily three- and
two-wheelers. Additionally, as e-rickshaws are faster and can carry more people,
compared to pedal rickshaws, short-distance mobility service providers are
rapidly replacing their conventional vehicles with electric variants. Further,
these can be driven for considerable distances with a single full charge.
Therefore, as an increasing number of people realize
the dangers of fossil fuel-based vehicles to the environment and themselves,
the sale of low-speed electric vehicles would continue surging in APAC.
