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ASEAN makes push to become global EV production hub
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People walk past parked electric vehicles deployed for the Group of 20 Summit in Nusa Dua, Bali, on Nov. 12, 2022. (AFP/Bay Ismoyo)
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SEAN leaders have agreed to cultivate the development of the electric vehicle (EV) industry in the region with hope of one day serving not just the regional market but the rest of the world as well.
The bloc’s leaders wrote in a recent declaration that they were committed to supporting the adoption of EVs and improving the state of the industry in each member state. This included creating a conducive business and investment environment.
Concluding the ASEAN summit in Labuan Bajo this week, President Joko "Jokowi" Widodo said the declaration marked an important step in the region’s economic cooperation.
"[The ecosystem] will be an important part of the global supply chain, so downstream industry is key," the President said on Thursday.
EV use in ASEAN is lower than in countries with more developed markets for the vehicles, such as China.
Consultancy McKinsey and Company data shows that combined EV adoption in Thailand, Malaysia and Indonesia in 2021 was less than that of Japan, where 1.2 percent of vehicles purchased were electric. China led in the indicator with 16.1 percent, followed by South Korea and Australia.
Indonesia, like other ASEAN member states, has been seeking investment from EV firms for the production of electric two- and four-wheeled vehicles in the country. This includes investment in raw materials necessary for the manufacture of EVs, such as nickel and cobalt.
