Asia’s Impact on the Electric Vehicle Industry

Electric cars are on the rise. More people are buying electric vehicles for environmental benefits, government incentives, and lower running costs. But what is the effect of Asia on the electric car industry? There are many factors that have contributed to Asia’s influence in this ever-changing industry. Here, are some ways to find out more about Asia’s impact on the electric vehicle industry.

The Rise of the Electric Car

The growing popularity of the electric cars comes as no surprise. The Nissan Leaf is one of the world’s most popular electric cars, and it is consistently in the top 5 most sold electric cars in the world since its launch in 2010. Other Asian electric car brands are also extremely popular, such as BYD and Hyundai. Hyundai’s plug-in hybrid vehicle, the Ioniq, was the world’s best-selling hybrid electric car in 2015.

Understandably, the electrification of cars is still at a very early stage. Automakers are still learning the best way to build cars powered by batteries rather than petrol. But with their ingenuity, technology and innovation, the electric car is expected to change the world.

The market for electric vehicles has been growing steadily in recent years. One reason for this is an increasing awareness about the effects of global warming. As the demand for electric cars grows, their prices have come down, making them affordable for more people. According to IEA, electric car prices have dropped to around $40,000 in 2021, making them less expensive than other cars. The report shows that the declining cost of electric cars is part of the growing global market, which is expected to grow to 29% percent of global sales by 2030.

In China, the government has been focusing on building the infrastructure for the electric car industry. China will build a road network of more than 100,000 km in order to pave the way for electric vehicles.

Why Asia?

The Asian region is by far the largest market for electric vehicles. There are approximately 4.5 million electric vehicles on the road in China alone, and that number is only growing. China is also the world’s largest manufacturer of electric vehicles, and now manufactures 70% of the world’s electric vehicles.

The growth in China’s electric vehicle market is largely due to the government’s heavy subsidies and regulations.

At the heart of the electric vehicle industry is the demand for batteries. A majority of the world’s lithium reserves are in South America, but Asia is responsible for 70 percent of global battery consumption. It is in Asia where many automobile manufacturers manufacture electric cars and battery cells. China and South Korea are at the forefront of this industry.

China and India – Important Players in Electric Vehicles

Over 1.3 million electric vehicles were sold in China in 2020. China had been regarded as the world leader in electric vehicles but they dramatically reduced their number of subsidies in 2021. China is also working towards establishing a fully-electric vehicle policy. For now, China is leading the way with electric cars, but India is close behind, likely driven by government incentives as well as high and rapid urbanization.

India’s electric car market is expanding as well. Sales of electric vehicles have been steadily increasing in the past few years. Currently, more than five million electric cars are registered in India. Companies like Tata Motors and Mahindra dominates the electric vehicles market share in the country.

India’s electric vehicle market size is expected to reach USD152.21 billion by 2030 and is expected to expand at a CAGR of 94.4% from 2021 to 2030.

Conclusion

With increasing pollution in major cities, a clear solution is to switch to electric cars and hybrids. And with this in mind, there are many benefits to electric vehicles. With the number of people buying electric cars growing, and more governments offering tax incentives to customers, Asia will continue to play an important role in the electric car industry.