Asia Pacific Electric Vehicle Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Battery Electric Vehicle (BEV) and Hybrid Vehicle (HEV)), By Drive Type (All Wheel Drive, Front Wheel Drive, and Rear Wheel Drive), By Range (Up to 150 Miles, 151-300 Miles, and Above 300 Miles), By Component (Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, and Low Voltage Electric Component) and Country Forecast, 2023-2030

Asia Pacific is the largest region in the global electric vehicle market. It is projected to register a CAGR of 18.5% during the forecast period. The Asia Pacific electric vehicle market is projected to grow from USD 196.06 billion in 2022 to USD 839.01 billion by 2030.

Asia Pacific is the fastest-growing region in the market due to the presence of major countries, such as India, China, Japan, and South Korea. In this region, the adoption rate of electric type of vehicles is increasing every year due to the presence of key electric vehicle manufacturers. India is predicted to be the fastest-growing country in the market during the forecast period due to the rising demand for fuel-efficient, high-performance, and low-emission vehicles. This growth is attributed to the increasing development of EVs by key companies. For instance, in December 2022, Tata Motors signed a contract with Everest Fleet Pvt. Ltd. for the delivery of 5,000 XPRES-T EVs. The vehicle claims to offer enhanced safety, a fast charging solution, premium interiors, and dynamic performance.

This report on the Asia Pacific market covers the following countries/regions - China, India, Japan, and the Rest of Asia Pacific.

LATEST TRENDS

Rise in Technological Advancement for Electric Vehicle Drive the Market Growth 

Technological advancements such as Solid-state batteries, Regenerative braking, Electric Motor, Battery management systems, Power electronics, Digital infotainment systems, Public charging infrastructure, Vehicle-to-Grid (V2G), and Advanced driver assistance systems (ADAS), accelerating the market growth.  For Instance, In April 2023, BYD introduced a new technological system for stabilizing car rides through rugged terrain, sharp turns, and even shallow water; this development drive market growth during the forecast period.

DRIVING FACTOR

Increasing Development of Charging Infrastructure Boost the Market Growth

The electric vehicle infrastructure (charging infrastructure) supports the developing fleet. The charging infrastructure boosts the adoption of electric vehicles in India. In 2022, India had 2,700 public charging stations and 5,500 charging connectors; the sale of these vehicles has increased every year since 2020, showing the changing mindset of people toward electric mobility. According to National Energy Administration, In China, charging infrastructure for electric vehicles (EVs) nearly doubled in 2022; the country now boasts 5.2 million charging units, including 1.8 million public charging facilities and 3.4 million private charging facilities, therefore rapid charging infrastructure development across region is influencing the populace to adopt these vehicles for personal commute, further augmenting the Asia Pacific electric vehicle market share.

RESTRAINING FACTOR

Electric Vehicle Cost and Battery Cost Hamper the Market Growth

The cost is the key factor in buying an electric vehicle. These vehicles are expensive compared to conventional fuel vehicles due to the batteries, which can fall anywhere between 35 percent and 40 percent of the price of a vehicle. The price of the electric vehicle (Passenger/commercial) segment is almost 50% higher than ICE vehicles; thus, customers may hesitate to purchase electric vehicles in the short run, hampering the market growth. However, with increased production of electric vehicle batteries in large volumes and technological advancements, the price of batteries is anticipated to affect the Asia Pacific electric vehicle market growth.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, BYD Company Ltd., Toyota Motor Corporation, and Tesla, Inc. are the key players in the Asia Pacific market. These companies have strong product portfolios and are actively involved in R&D investments to accelerate product launches and approvals during the forecast period.

Other prominent players, such as TATA Motors and Nissan Motor Co., Ltd. are also leading the market due to their strong distribution networks for their products. Some of the other major companies involved in this market include AIC Motor Corporation Limited, Hyundai Motor Company, and others.

LIST OF KEY COMPANIES PROFILED:

• BYD Company Ltd. (China)


• Tesla (U.S.)


• Honda Motor Co., Ltd. (Japan)


• Hyundai Motor Company (South Korea)


• Nissan Motor Co., Ltd. (Japan)


• Mitsubishi Motors Corporation (Japan)


• TOYOTA MOTOR CORPORATION (Japan)


• Kia Motors Corporation (South Korea)


• TATA Motors (India)


• SAIC Motor Corporation Limited (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2022: Tata Motors signed a contract with BluSmart Electric Mobility to deliver 10,000 XPRES-T electric vehicles to the company. Through this deal, Tata Motors intends to educate and enhance the adoption of electric mobility in India.


• June 2022:  Sony signed a joint venture agreement with Honda to establish a company to build electric cars together. The new company will be called “Sony Honda Mobility Inc.” Sony Honda Mobility Inc. will be formed in the same year and plans to start sales of both its first EV and “provision of services for mobility” in 2025.

REPORT COVERAGE

The market report provides qualitative and quantitative insights on the market and a detailed analysis of the industry’s size & growth rate for all possible segments in the market. Along with the market’s forecast, the research report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of the number of EVs, types of vehicles, a regulatory scenario in key developing countries, new product launches, key industry developments – mergers, acquisitions & partnerships, and the impact of COVID-19 on the market.

Report Scope & Segmentation