By Alithea De Jesus
Manila, Philippines (February 4, 2020) – With the initiative to ramp up the adoption from conventional to electric vehicle in the ASEAN region, the new study indicated that Filipinos and their Southeast Asian neighbors continue to be highly enthusiastic about owning an electrified vehicle. The enthusiasm is largely driven by a growing need to create a more sustainable future.
The second edition of the Nissan-commissioned study by Frost & Sullivan, titled “The Future of Electrified Vehicles in Southeast Asia” was released today during “Nissan FUTURES – Electrification and Beyond”, a virtual gathering of industry leaders, government officials, and media.
Interestingly, the consumer research in Thailand, the Philippines, Indonesia, Malaysia, Vietnam, and Singapore also reveals that nearly two-thirds (64%) of respondents across Southeast Asia say they are more willing to consider an electrified vehicle than they were five years ago. 66% of consumers across the region believe they will inevitably adopt electrified mobility as part of their lives in the near future.
According to the study, 45% of Filipino car drivers state they would certainly consider an electrified vehicle as their next car purchase within the next three years. The positive impact to the environment is the most motivating factor for Filipinos to buy an electrified vehicle, as 46% of respondents – the highest in the region – feel strongly about the environment and climate change.
Contribution to a greener future
The study also unveils growing environmental awareness across Southeast Asia, with respondents believing that their adoption of an electrified vehicle would undoubtedly contribute to environmental protection. In 2020, 38% of regional respondents can be classified as ‘environmentalists’, compared to 34% in a similar research in 2018.
This group of consumers is driven by strong environmental awareness and climate change concerns. They view electrified vehicle use as a way to do their bit for the environment.
81% of study respondents across the region mentioned that their choice would be significantly influenced by different power sources. This care for the environment was found to be most important to consumers in the Philippines and Thailand.
Barriers for adoption reduced
The fear of running out of power before arriving at the charging station (48%) continues to be the most significant barrier in the adoption of an electrified vehicle across the region. While barriers remain, consumers are more enthusiastic about the adoption of electrified vehicles.
In line with the 2018 findings, over three-quarters of the recent study respondents (77%) indicate that tax benefits and installation of charging stations at apartment buildings (75%) are the top-2 incentives for them to switch to an electrified vehicle. For Filipinos to make that switch to EVs, survey respondents identify tax incentives (80%), charging infrastructure in residential areas (77%), and priority lanes for EVs (52%) as top incentives for that move. This demonstrates the ongoing need for car manufacturers, policy makers and private parties to collaborate to spur the adoption of electrified mobility.
Is it a possible dream to “Electrifying” 250 million cars?
All speakers said yes.
Mr. Dusit Anantarak, Senior Expert, Office of Industrial Economics, Ministry of Industry, Thailand pointed out that the initiative is already done in the ASEAN region indicated that this is achievable as many have considered to embracing the sustainable future of mobility which is now in Thailand, Singapore, and Hong Kong, and soon in Indonesia and Philippines.
This was also seconded by Mr. Edmund Araga, President of Electric Vehicle Association of the Philippines, that the awareness and support from the government would make this achievable as others would eventually take a radical step to embrace the future of mobility and the long term benefits that it will have for everyone.
For his part, Mr. Isao Sekiguchi, Regional Vice President, Nissan ASEAN explained the importance of sustained campaign, education and collaboration with all the stakeholders.
“This is truly possible. The most important thing is to start now, think about the future and its sustainability, and make it our legacy.,” he concluded.
About the study
The study “The Future of Electrified Vehicles in Southeast Asia” was conducted by Frost & Sullivan in September 2020 in six ASEAN markets: Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam. The findings are based on 3,000 online customer responses among car drivers in select cities, to understand customers’ awareness, attitudes, behavior and perceptions towards electrified vehicles. “Electrified vehicle” in this study means battery electric vehicle, plug-in hybrid electric vehicle and e-POWER. It excludes full hybrid vehicles. The research is a follow-up from a study conducted in January 2018.