The APAC LSEV market is projected to reach 71.8 million units by 2025, according to P&S Intelligence.
The growth of the market is primarily driven by stringent government norms and regulations on carbon emissions, increasing government support in the form of incentives to encourage the adoption of LSEVs, and rising environmental awareness among the people in the region.
Insights into market segments
On the basis of product, the APAC LSEV market has been categorized into two-wheeler, three-wheeler, and four-wheeler. Of these, the two-wheeler category led the market in 2017, with a market share of more than 75% in terms of volume. The category is expected to continue holding the largest share in the market in the coming years, owing to the increasing consumer preference for two-wheelers as a means of personal transport.
Based on voltage, the market can be categorized into 24 V, 36 V, 48 V, 60 V, and 72 V. Of these, the 48 V category is expected to continue dominating the APAC LSEV market in the coming years. This can be attributed to the preferred use of 48 V batteries in electric two-wheelers and three-wheelers by original equipment manufacturers. However, faster growth in the market during the period is expected from the 72 V category, as the demand for high-speed scooters and micro-cars continues to increase. This is because the speed of the vehicle is directly proportional to the voltage of the battery.
China led the APAC LSEV market in 2017, in terms of both value and volume, owing to favorable government policies and rapid increase in the urban population of the country. Also, most of the key players in the APAC market are concentrated in China, making it the largest market for LSEVs in the region.
Government incentives and rising environmental awareness are the key growth drivers for the market
Government incentives in the form of subsidies and grants, and rising environmental awareness are driving the growth of the APAC LSEV market. Governments, especially of China and India, are aiming at the complete electrification of public transport. In an effort to achieve this, they are providing support in the form of incentives to encourage the adoption of these vehicles. For instance, in India, the government is providing subsidies ranging from $370 (INR 25,000) to $910 (INR 61,000) under the FAME [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles] scheme. Also, since much of the air pollution is caused by conventional passenger carriers, environmental authorities in the APAC region are taking initiatives to spread awareness on environmental sustainability, thereby encouraging the adoption of these vehicles and driving their market growth.
Browse report overview with 155 tables and 54 figures spread through 195 pages and detailed TOC on "APAC Low-Speed Electric Vehicle (LSEV) Market by Product (Two-Wheeler [Scooter, Motorcycle, Bike, Kick Scooter, Mono Wheel], Three-Wheeler, Four-Wheeler), By Voltage (24 V, 36 V, 48 V, 60 V, 72 V), By Country (China, India, Japan, South Korea, Indonesia, Malaysia, Singapore, Philippines, Thailand) – Market Size, Share, Development, Growth, and Demand Forecast, 2017–2025" at:https://www.psmarketresearch.com/market-analysis/apac-lsev-market
Increasing investment in research and development (R&D) is boosting the LSEV sales
Key players in the APAC LSEV market are increasingly making investments for the R&D of improved and affordable LSEVs. Investments are also being made to increase the production capacity through facility expansion to address the growing needs of the market. At present, the cost of LSEVs, even after subsidization, is much higher than that of their conventional counterparts. Manufacturers in the market are therefore making efforts to bring down the cost of these vehicles on par with that of gasoline-based vehicles through technological advancements in order to boost the sales of these vehicles.
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.
APAC LSEV Market Segmentation