Asia Pacific Electric Vehicle (EV) Market Size - By Vehicle (Two-wheelers, Passenger Cars, Commercial), By Battery (Sealed Lead Acid, Nickel Metal Hydride, Lithium Ion), Propulsion, Price Range, Drive Type, Range, End Use & Forecast 2023 - 2032

Asia Pacific Electric Vehicle (EV) Market Size - By Vehicle (Two-wheelers, Passenger Cars, Commercial), By Battery (Sealed Lead Acid, Nickel Metal Hydride, Lithium Ion), Propulsion, Price Range, Drive Type, Range, End Use & Forecast 2023 - 2032

Asia Pacific Electric Vehicle (EV) Market Size will record 32.5% CAGR between 2023 and 2032, driven by the healthy growth of the e-commerce industry across the region. E-commerce relies heavily on last-mile delivery services, making it an ideal candidate for EV adoption. Governments in the region are incentivizing green transportation, and the need for efficient, eco-friendly delivery vehicles aligns with EV development. Besides, companies operating in the regional e-commerce space are putting their foot forward to replace their existing fossil fuel-based fleet with EVs.

For instance, in February 2021, Flipkart announced its ambitious plan to incorporate over 25,000 electric vehicles into its supply chain operations by 2030. The e-commerce giant has formed alliances with prominent electric vehicle manufacturers such as Hero Electric, Mahindra Electric, and Piaggio to procure vehicles for its first and last-mile delivery services nationwide. Amazon India, in 2020, also unveiled its commitment to include 10,000 electric vehicles in its delivery fleet by 2025 in India. This synergy between e-commerce and EVs is expected to drive significant growth in the electric vehicle market across Asia Pacific.

The overall Asia Pacific EV market is categorized based on propulsion, vehicle, battery, drive, price range, range, end-use, and region.

Hybrid electric vehicle (HEV) industry in Asia Pacific will exhibit a healthy growth rate through 2032. Rising environmental consciousness and stringent emissions regulations are pushing consumers in APAC toward eco-friendly transportation options, propelling the demand for HEVs. Governments in the region are offering incentives and subsidies to promote hybrid vehicle adoption, making them more cost-effective. Additionally, concerns about energy security and volatile fuel prices further drive the popularity of hybrid electric vehicles, making them a preferred choice among consumers in Asia Pacific.

Asia Pacific commercial EV market share will expand notably over 2023-2032. Stringent emission regulations focused on reducing pollution and improving air quality are compelling businesses to switch to electric alternatives. Additionally, the region's growing urbanization and the need for efficient, cost-effective last-mile delivery solutions are encouraging the use of electric commercial vehicles. Government incentives and subsidies further incentivize businesses to invest in this eco-friendly and sustainable mode of transportation, spurring its adoption across the region.

India electric vehicle (EV) industry will record a decent valuation by 2032. Government incentives and subsidies are promoting EV adoption, making them more affordable for consumers. Government estimates indicate that approximately 400 electric buses were sold in FY2021, with expectations of this number surging to an estimated 900 units in FY2022. In its budget for 2021-22, the Government of India reaffirmed its commitment and continued support for the electric vehicle (EV) sector.

Rising environmental concerns and the need to combat pollution and reduce carbon emissions are driving interest in eco-friendly transportation. Besides, the country's robust manufacturing capabilities and a burgeoning middle class seeking cost-effective and sustainable mobility solutions contribute to the high growth in the Indian EV industry.