Lower fuel costs nudging South-east Asia consumers to switch to EVs: Deloitte

HYPER-INFLATIONARY conditions are prompting consumers in South-east Asia to look at electric vehicles (EVs) as a cheaper vehicle option because of perceived lower fuel costs, a new Deloitte study found.

Among the reasons for choosing EVs as their next vehicle, lower fuel costs was the top motivator for consumers in six South-east Asian geographies. This was followed by perceptions of a better driving experience and less maintenance required.

The study found that climate change concerns were not a top motivator for consumers, despite government messaging around the need to address the topic.

The shift towards EVs appears to be happening the most quickly in Singapore, with hybrid EVs garnering the most interest among Singapore respondents. Only one-third of survey respondents preferred conventional internal combustion engine vehicles.

In the region, interest in hybrid vehicles continued to outpace interest in EVs in most geographies except Thailand.

Although South-east Asian consumers are keen to make the switch to EVs, they continue to be concerned about charging infrastructure. This is especially so in Singapore, where consumers remain worried about charging times.

Singaporeans expect a fully charged battery in an EV to have a driving range of at least 300 km before they would consider one as a viable option for their next vehicle.

Unlike the rest of the region, which indicated a preference for at-home charging, 40 per cent of Singaporean respondents expect to charge their EVs at on-street or public charging stations. More than half do not have the means to install chargers in their homes.

Deloitte noted that Singapore respondents also showed the highest willingness to wait more than four weeks for their new vehicle to be delivered. This implies a potential for a more “build-to-order” approach for the retail market.

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Despite the interest in EVs, a significant number of South-east Asia consumers have displayed a willingness to rethink their EV purchase decision if an environmentally sustainable, synthetic fuel which can be used in traditional combustion engines becomes commercially available.

As part of its global automotive consumer study, Deloitte surveyed more than 26,000 consumers in 24 geographies between September and October 2022. In South-east Asia, it surveyed 6,048 consumers across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.