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APAC LSEV Market Overview
The APAC LSEV market is projected to reach 71.8 million units by 2025, registering a CAGR of 6.6% during the forecast period. The market has witnessed significant growth in the recent past owing to increasing urbanization, favorable government policies, and declining battery prices.
Based on product, the market has been categorized into two-wheeler, three-wheeler, and four-wheeler. Of the three, the two-wheeler category dominated the APAC LSEV market in 2017, accounting for more than 75% share in terms of volume. Moreover, the category is expected to continue holding the largest market share in the coming years, owing to the increasing adoption of two-wheelers as a means of personal transport.
APAC LSEV MARKET, BY PRODUCT, '000 UNITS (2017-2025)
On the basis of voltage, the APAC LSEV market has been categorized into 24 V, 36 V, 48 V, 60 V, and 72 V. Of these, the 48 V category held the largest market share in terms of volume in 2017. This can be attributed to the preferred use of 48 V batteries in electric two-wheelers and three-wheelers by original equipment manufacturers. The 48 V category is anticipated to lead the market during the forecast period as well.
APAC LSEV Market Dynamics
One of the emerging trends in the APAC LSEV market is the shift in the preference of major players from sealed lead acid (SLA) batteries to lithium-ion (Li-ion) batteries. Li-ion batteries are gaining traction in the market, as they are lighter in weight and smaller in size as compared to SLA batteries. Although Li-ion batteries are costlier than SLA batteries, their advantageous properties are expected to make them a preferred choice for LSEVs in the coming years. Moreover, the accelerated production of Li-ion batteries and the decline in their prices in recent years due to advancements in battery technology have made their penetration in the LSEV market easier.
The growth of the APAC LSEV market is predominantly driven by the rapidly increasing urbanization in the APAC countries, especially China and India, rising awareness about environmental degradation and related government policies, and the government support in the form of financial incentives (subsidies, grants, and tax rebates).
Besides, a major chunk of the crude oil imports by countries in the APAC region is used in public transport vehicles. These countries are looking to cut down their crude oil import expenditure by adopting LSEVs. Despite the high initial cost, LSEVs offer low operational costs as compared to their conventional counterparts. Also, public transport authorities in developing economies are focusing more on long-term environmental and cost benefits, which is driving the growth of the APAC LSEV market.
The major factor restraining the growth of the APAC LSEV market is the lack of proper charging infrastructure. The inadequate number of charging stations directly affects the potential sales of LSEVs. When it comes to using an LSEV, the consumer is concerned about the range. This range anxiety can only be addressed through the installation of a proper network of charging stations across the region. However, installation on such a large scale demands adequate funding, both public and private, and a considerable amount of time.
APAC LSEV Market Competitive Landscape
Some of the key players in the APAC LSEV market are Terra Motors Corporation, Changzhou Yufeng Vehicle Co. Ltd., Jiangsu Kingbon Vehicle Co. Ltd., Hero Electric Vehicles Pvt. Ltd., Jiangsu East Yonsland Vehicle Manufacturing Co. Ltd., and ZHIDOU Electric Vehicle Co. Ltd.