Five Low-Carbon Transport Trends Steering ASEAN Forward

The uptake of electric vehicles (EV) in Southeast Asia has been slow, especially in potential high-growth markets like Indonesia and Vietnam. Manufacturers from China, South Korea, and Southeast Asia intend to produce larger ranges of affordable compact EVs and motorbikes to stimulate demand.

Vietnam’s VinFast wants to be a global EV player and launched new models at the 2021 Los Angeles Auto Show. Indonesia’s government has challenged electric motorbike manufacturers to sell six million new models by 2025 to help cut vehicle emissions. Thailand wants EVs to comprise 30 percent of its auto output by 2030.

Developing national e-vehicle infrastructure is a priority, especially in the region’s larger markets. Significant public and private investment will be channeled to develop e-charging networks, service centers, and battery and component supply chains. Meanwhile, Vietnam has created an Electric Vehicle Index to encourage drivers to stay updated about the latest EV technologies, performance efficiency of new models, and charging locations.

Takeaways:

• Consumer demand for EVs is likely to increase as manufacturers introduce more affordable models
• Building national EV charging and servicing networks is a priority across Southeast Asia
• Sales of e-scooters and motorbikes will experience strong growth in the coming years

China is the world’s largest EV market and has developed a robust national value chain over the past decade. Several established Chinese EV makers are preparing to manufacture and sell in Southeast Asian markets as demand develops. Chinese OEMs are currently focused on improving vehicle efficiency and lowering costs to compete for regional sales with ambitious EV makers from Japan and South Korea.

China experienced a boost in consumer interest when EV megabrand Tesla became the first automaker to wholly own its plant in China. While Tesla plans to expand its Chinese production facilities and dealership network, Indonesia has been negotiating with Elon Musk to open a plant in the market and similarly elevate consumer interest in the EV sector.

Takeaways:

• Southeast Asian markets are eager to tap China’s experiences in developing clean vehicle manufacturing, sales, and distribution
• Chinese producers of electric cars, trucks, buses, and motorcycles will expand operations across the region
• Drivers in Southeast Asia will welcome greater choice and affordability of EVs as local and international brands battle for market share

Flying taxis are creating a viral buzz across the Asia Pacific. The futuristic vision of drone-style passenger aircraft crisscrossing the skies is closer to a reality than assumed. Manufacturers of electric vertical take-off and landing (eVTOL) aircraft, plus airlines and investors are confident of launching passenger services in the second half of the decade.

In China, eVTOL specialists such as eHang are working to commercialize electric-powered aerial passenger vehicles for short, low-altitude trips. It has established joint ventures in Thailand and has received orders from investors in Indonesia, Japan, and Malaysia.

Malaysia-based low-cost carrier AirAsia plans to lease 100 eVTOLs to create an “urban air mobility platform in Southeast Asia.” Japan Airlines has invested in Germany’s Volocopter and aims to launch public test flights of its eVTOL air taxis in Japan by 2023.

Takeaways:

• Emission-free eVTOL technologies could revolutionize urban transport networks and the way people commute across cities and beyond
• If deployed on a significant scale, urban air mobility could help reduce chronic traffic congestion and cut greenhouse gas emissions
• Aviation regulation is a vital issue, as governments must draft new laws for low-altitude flying over cities and formulate stringent eVTOL certification standards

Most Southeast Asian markets have large cities located adjacent to ports or the coast. Many are assessing alternative green transport options. Regional governments are monitoring a prototype project by Ocean Flyer in Auckland and Wellington in New Zealand. It plans to invest in 25 zero-emission, low-altitude sea gliders that take off from and land on the sea.

The 12 or 100-seat sea gliders, which are a hybrid between a plane and a boat, use proprietary technology to fly just 10 meters above the waves throughout each journey. This eliminates the large energy thrusts caused by take-off and landing. Beyond New Zealand, Hawaiian Air plans to develop an electric-powered sea glider network for residents and travelers hopping between Hawaii’s islands.

Takeaways:

• Sea glider technologies could help decrease traffic congestion in coastal cities and make journeys cleaner, faster, and more scenic
• They could transform sea-based commuting and make cross-city transport more experiential for residents and tourists
• Aerodynamic efficiency will reduce operating costs which can be passed on to passengers through low-priced fares

The 2025 Osaka Expo will take place on a man-made island in Osaka Bay, Japan and aims to attract 28 million visitors. The six-month event is titled Designing Future Society for Our Lives and will showcase the latest global innovations in sustainable technology, transport, and city living.

Promoted as “A laboratory for a future society” Osaka Expo will gather the world’s most advanced low-carbon transport initiatives, including eVTOL, and EV makers. Visitors will enjoy access to a pilot 6G network, which will power pioneering intelligent technologies, including autonomous vehicles powered by electric and alternative fuel innovations. 

Takeaways:

• Osaka Expo 2025 will present new visions for clean, green transport in Japan, across Asia, and worldwide
• International zero-emission eVTOL, car and motorbike manufacturers will showcase their latest innovations
• Visitors will also be able to see for themselves how sustainable aviation fuels and zero-carbon railways could transform the future of travel