The Asia-Pacific (APAC) low speed electric vehicle (LSEV) market is predicted to progress at a CAGR of 6.6% from 2018 to 2025 and expand to 71.8 million units in 2025, as per the market research company, P&S Intelligence. The main factors propelling the growth of the market are the rising measures and initiatives being taken by the governments of many APAC countries, the increasing public awareness of environmental degradation caused because of the usage of oil and gas-powered vehicles, and the implementation of strict emission norms in several APAC countries.
A major factor fueling the advancement of the market is the increasing focus of the governments of many APAC nations on reducing their expenditure on crude oil imports. The adoption of LSEVs is one of the best methods for mitigating the costs of crude oil imports. Furthermore, the LSEVs are eco-friendly and have lower operational costs than the conventionally used oil and gas-powered automobiles. Due to these factors, the public transport organizations in the APAC countries are rapidly adopting these vehicles in their transport fleets.
The other key factors boosting the growth of the market are the increasing awareness amongst the public of the environmental degradation caused due to the large-scale utilization of the conventional vehicles and the rapid urbanization in various APAC nations, especially India and China. Furthermore, the governments of APAC nations are providing subsidies, tax rebates, and grants on the purchase of low speed electric vehicles, which is, in turn, causing a rapid expansion of the market.
The Indian and Chinese governments are aiming to completely electrify the public transport fleets in their countries during the next few years. In order to achieve this goal, they are offering incentives for encouraging the utilization of low-speed electric vehicles. For example, the Indian government launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, under which, they are offering subsidies in the range of $370â€”$910 to the infrastructure providers and manufacturers of the electric vehicles.
Till now, the APAC LSEV market recorded the highest growth, in both volume and value, in China. This is ascribed to the presence of numerous favorable government regulations and policies for the adoption of low speed electric vehicles in the country. Additionally, the soaring urban population and the existence of prominent market players in the country contributed significantly to the surge of the market in the country over the past few years.
Thus, with the growing implementation of favorable government regulations for the sale of electric vehicles and the increasing customer preference for eco-friendly modes of transportation, the market will exhibit stable growth in the future years.