Indonesia is predicted to lead electric car sales in the ASEAN or Southeast Asia region in 2040. This prediction was recently issued by BloombergNEF.
As quoted by the Bangkok Post, Indonesia and Thailand will play an important role in the electric car industry in the Southeast Asian region. Currently, Thailand is still leading the sales of electric cars compared to Indonesia.
In 2022, Negeri Gajah Putih managed to sell 51,000 electric cars. On the other hand, Indonesia is in second place with electric car sales of 15,437 units last year.
“Thauland will be a big player in the electric car market, but in 2040 Indonesia will be ahead due to the huge size of the passenger car market,” said Allen Tom Abraham, senior analyst at BloombergNEF.
He continued that currently electric cars in Indonesia and Thailand are very advanced thanks to the support and incentives provided by the government. New policies continue to be issued by the governments of Indonesia and Thailand to offer electric cars.
In Indonesia, it is known that there are currently two car brands that produce electric cars in the country. Both are Wuling and Hyundai.
Wuling produces the Wuling Air ev electric car in the Cikarang area, West Java. Likewise with Hyundai which makes the Hyundai Ioniq 5 in the same region.
Furthermore, BloombergNEF said that the production of electric cars requires large investments, especially in the need for battery supply chains. Annual lithium battery demand is expected to grow rapidly, approaching 5.7KWh per year by 2035 in a transitional economy scenario. New applications for lithium-ion batteries are expected to reach 244 TWh by 2050.
This is in line with the increasing demand for electric cars globally. Allen Tom Abraham said the market share of electric car sales is expected to jump from 14 percent in 2022 to 30 percent in 2026.
From the condition of the electric car market, China will still be the main market with electric car market control reaching 52 percent. Other regions are following Europe with predictions of market share reaching 42 percent.
It is estimated that BloombergNEF’s global car sales, especially passenger cars, will increase to almost 27 million units in 2026, up from 19.5 million units sold in 2022.
