EV Market soars as Thailand and Indonesia take the lead in Asia

In a global trend, electric vehicles (EVs) are steadily gaining traction in the worldwide automobile market, with significant growth realised in Asia-ASEAN countries, specifically Thailand and Indonesia. This comes as per a study undertaken by the BloombergNEF research agency.

Ideally placed at the forefront of Asia-Pacific transportation, Senior Analyst of BloombergNEF, Allen Tom Abraham, projected a sharp increase in the global new passenger sales share, from 14% in 2022 to an astounding 30% by 2026.

This surging demand for EVs can be witnessed in a myriad of countries worldwide, with China and Europe standing as dominant figures in the market. Reportedly, EVs rule China’s automobile market with an impressive 52% share, while Europe follows closely, laying claim to 42% of the total car sales.

Several countries across Europe have exhibited substantial growth within their EV market. In particular, the Nordic nations hold an exceptional 89% market share, and Germany is not far behind at 59%. Across the Atlantic, the United States has experienced a remarkable expansion in its EV sales. As per BloombergNEF’s estimation, the EV market share is braced to soar to 28% in 2026 from 7.6% witnessed last year, reported Bangkok Post.

Abraham went on to assert his belief that global EV sales are slated to rocket upwards in the passenger car segment, reaching nearly 27 million units in 2026 from 19.5 million units in 2022. Within the ASEAN region, Thailand, and Indonesia are poised to serve as pivotal players in the EV market. This is attributed to the nations’ substantial support for the EV industry and their significant respective population sizes.

As per the records of last year, Thailand produced 51,000 EV units, with the expectation of this number escalating to a towering 2.9 million units by 2040. Abraham said…

“Thailand will be a big player in the EV market, but after 2040 Indonesia is set to take the reins within the passenger car segment due to its expansive market.”

The EV market is experiencing rapid growth throughout Thailand. This is predominantly due to the government’s efforts to promote the production of environmentally friendly, new-generation vehicles. Initiatives launched earlier last year by the Thai Cabinet include a package of incentives, composed of tax reductions and subsidies, to engender and further augment EV consumption and production between 2022 and 2023.

Meanwhile, BloombergNEF confirmed that EV production calls for a significant investment in battery supply chains. They anticipate yearly lithium battery demand to surge, approaching 5.7 terawatt-hours by 2035 under the economic transition scenario. Should governments successfully strike a balance between greenhouse gas emissions and absorption as per the net-zero scenario, new demand for lithium-ion batteries is slated to reach 244 TWh by 2050.

As EV markets burgeon in numerous countries, the global oil demand for road transport is consequently expected to dip to 35.5 million barrels per day by 2040. This figure reflects a drop from the staggering 42.6 million barrels recorded last year, as detailed by the head of downstream oil and petrochemical BloombergNEF’s Sisi Tang.