Showing posts with label APAC LSEV Demand. Show all posts
Showing posts with label APAC LSEV Demand. Show all posts

Asia-Pacific (APAC) Low-Speed Electric Vehicle Market Growing Steadily


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.

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.
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