Opportunities in the Asian automotive sector are evolving at a remarkable pace. The region is in the midst of a seismic shift as demand for internal combustion engine (ICE) vehicles declines, and interest in electric vehicles (EVs) surges.
Across Asia, the transition from ICE vehicles to battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) is accelerating. In 2023, EV sales nearly doubled year-on-year – and the momentum shows no signs of slowing. Projections suggest that EV sales in Asia could grow by up to 22% annually, with nearly 40% of new cars sold by 2028 expected to be electric.
A study by the International Renewable Energy Agency forecasts that 20% of all vehicles in Southeast Asia will be electric by 2025 — highlighting just how swiftly the market is transforming.
Despite strong growth, challenges remain. EV infrastructure gaps, regulatory inconsistencies, and logistical constraints vary by market. Firms entering Asia must tailor their approach to each country’s level of development and policy landscape.
However, the momentum is clear: Asia is electrifying at scale. Whether it’s two-wheelers in India, hydrogen trucks in Korea, or battery supply chains in Indonesia, the region is brimming with opportunity for foreign firms.
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