It may surprise you to know that, given the limitations in model availability and charging infrastructure, Southeast Asians (and Filipinos in particular) are pretty open to the idea of owning an electrified vehicle, according to a commissioned study by Nissan.
Widely known for its popular electric vehicle Leaf, the brand staged the “Nissan Futures – Electrification and Beyond,” an online event where it presented the results of a Frost & Sullivan study entitled “The Future of Electrified Vehicles in Southeast Asia,” which ascertains the pulse of consumers in the following ASEAN countries: Thailand, Indonesia, Malaysia, Vietnam, Singapore, and the Philippines.
The new study, a follow-up to a similar one done in 2018, reveals that close to two-thirds (64 percent) of respondents expressed willingness to “consider an electrified vehicle” compared to five years ago. Sixty-six percent believe electrified mobility will be part of their lives in the near future. For clarity, the survey excludes full hybrid vehicles, and includes instead “battery electric vehicles, plug-in hybrid electric vehicles, and e-Power.”
Nissan’s growth strategy is obviously predicated on an electrification effort – not just via the aforementioned all-electric Leaf but, more realistically for now, its hybrid e-Power technology. The “Nissan Futures” talk was headlined by the company’s VP for the ASEAN region, Isao Sekiguchi, who commented on the event’s provocative question: “Electrifying 250 million cars: An impossible dream” by asking, “Why would we want to electrify cars in the first place?”
Well, he answered his question by saying that electrified mobility is the future and, in the face of the pandemic, the need for personal mobility has been made even more urgent – particularly in light of what he calls “strains on our megacities,” exacerbated by pollution from conventional internal combustion engines that power the majority of vehicles.
Sekiguchi pleasantly noted that “consumers in this region want to be greener,” and that this shift in mindset “is not only good for us but for future generations.”
Far from being solely a means to silence our environmental conscience, contemporary electric mobility, added the executive, is “fun to drive” – promising quick acceleration, instant torque, and (in the case of the Nissan Leaf), convenient one-pedal driving. “People in this reason are ‘greener’ (and have) more emotional ties with cars… What is important is the combination of what automakers can do and what government and private sector can do to enhance incentivization,” he observed.
The executive underscored that while opportunities are present, “automakers can’t do it alone.”
Meanwhile, Asian Federation of Electric Vehicles Associations President Edmund Araga said that the region “has a lot of potential” owing to its population and their openness to technology and innovation. “Millennials are more ready,” he declared.
Additionally, the Frost & Sullivan research, reported Nissan, “also unveils growing environmental awareness across Southeast Asia, with respondents believing that their adoption of an electrified vehicle would undoubtedly contribute to environmental protection.”
A greater percentage of respondents now fancy themselves as “environmentalists.” From 34 percent in 2018, the latest study returned 38 percent. “This group of consumers is driven by strong environmental awareness and climate change concerns. They view electrified vehicle use as a way to do their bit for the environment,” revealed the company in a release. Filipinos, in particular, figured on the top of the list in this regard.
However, a successful push to realize more electrified cars on ASEAN roads can only reach fruition, added Sekiguchi, through a collaborative effort among carmakers, government, and the private sector. Referring to the Leaf, he reported that the vehicle has been introduced in Hong Kong, and is rolling out in Southeast Asia. It is expected to arrive in the Philippines “within the coming months.”
To be clear though, the study (boasting some 3,000 respondents) still revealed a prevailing concern (48 percent) of “running out of power before arriving at the charging station,” making this a “significant barrier” for greater adoption. On the other hand, 77 percent said that tax benefits and 75 percent posited that installation of charging stations at apartment buildings are the top two incentives for going electric.
For Filipinos, the top three inducements are tax incentives (80 percent), charging infrastructure in residential areas (77 percent), and priority lanes for EVs (52 percent).
With more brands bringing in various forms of electrified vehicles, it remains to be seen if consumers’ avowed openness will translate to heightened sales. But one thing is sure, this tango with electrification will take not two but three parties to work.