Singapore is poised to dominate the Southeast Asian electric vehicle (EV) market by 2040, with a projected 80% of all passenger vehicles in the country expected to be electric by that year. This figure stands in stark contrast to the regional average of just 24%.
The EV landscape in Singapore is already thriving, with EVs accounting for 19% of all new car sales in 2023 and surging to over 32% in the first seven months of 2024[3]. Several factors are driving this rapid adoption:
- Supportive government policies, including financial incentives, tax breaks, and subsidies for EV purchases and charging infrastructure development.
- A unique Certificate of Entitlement (COE) system that encourages car owners to trade in their vehicles every 10 years, leading to faster EV adoption compared to other Southeast Asian countries where owners tend to hold on to their cars for longer
- Falling battery prices, which are expected to continue decreasing as battery technology improves and production scales up, making EVs more affordable and competitive with gasoline-powered vehicles
Thailand, currently the largest EV market in Southeast Asia, is projected to have the second-highest share of passenger EVs by 2040 at 41%. The country saw a more than fourfold increase in passenger EV sales in 2023, reaching 86,383 units, driven by subsidies, tax breaks, and the establishment of manufacturing bases by major Chinese automakers like BYD and Great Wall Motor.
Vietnam and Indonesia are also making progress, aiming for 31% and 25% of passenger vehicles to be electric by 2040, respectively. However, Malaysia and the Philippines are expected to lag behind with 15% and 10% EV market share, respectively.
Singapore is also leading the region in charging infrastructure, with one charging station for every three EVs in 2023, compared to one per 16 EVs in Thailand, one per 38 in Malaysia, and one per 42 in Indonesia. The country plans to expand its charging network to 60,000 EV charging points by 2030.
The electrification of public transport is another key aspect of Southeast Asia's green future. Thailand leads the region with plans for thousands of electric buses in Bangkok, while Indonesia aims to electrify half of Jakarta's bus fleet by 2027. Singapore has set ambitious goals as well, with plans for half of its 6,000 public buses to be electric by 2030 and a fully electric public bus fleet by 2040.
As Singapore continues to invest in charging infrastructure, introduce more affordable EV models, and promote the adoption of electric vehicles, it is poised to set the standard for sustainable transportation in Southeast Asia by 2040.
Sources
[1] https://www.statista.com/topics/12251/electric-vehicle-market-in-singapore/
[2] https://www.credenceresearch.com/report/singapore-electric-vehicle-ev-market
[3] https://borneobulletin.com.bn/singapore-will-have-largest-share-of-passenger-evs-in-southeast-asia-by-2040-report/
[4] https://www.lta.gov.sg/content/ltagov/en/industry_innovations/technologies/electric_vehicles/our_ev_vision.html
[5] https://restofworld.org/2024/singapore-ev-cars-2030/
[6] https://www.lta.gov.sg/content/ltagov/en/industry_innovations/technologies/electric_vehicles.html
[7] https://www.straitstimes.com/singapore/transport/singapore-will-have-largest-share-of-passenger-evs-in-s-e-asia-by-2040-report
[8] https://vulcanpost.com/870248/singapore-lead-southeast-asia-passenger-electric-vehicles-2040/
