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Hello reader,
I’m in Hanoi again after a trip home to Ireland for Christmas. While it’s good to be back, there is one big drawback about being here in winter: pollution.
Hanoi was recently named the world’s most polluted city, and the effects can be seen and felt. Exercising outdoors over the weekend left my lungs and eyes burning amid the smoke – sadly, it seems like we’re in for months of this.
Electric vehicles (EVs) have been touted as one of the solutions to pollution problems across the world. While I’m still not 100% convinced, removing gas guzzlers from the streets wouldn’t hurt.
Southeast Asian nations want to electrify their roads sooner rather than later, but as our featured story shows, that may be easier said than done.
Today we look at:
- SEA’s EV adoption conundrum
- Flipkart co-founder Sachin Bansal eyes sale of his stake in Ola
- Other newsy highlights such as Patrick Walujo’s commitment to stay on as GoTo’s CEO until 2029 and a funding bump for India’s SaaS last year
Premium summary
Southeast Asia’s bumpy path to electric roads
Image credit: Timmy Loen
Governments across Southeast Asia have set ambitious targets for EV adoption as part of their long-term sustainability goals.
But given all the hurdles in their way, it’s also fair to ask if they might have bitten off more than they can chew.
- Counting costs: One major obstacle is the costs for consumers, which remain high despite the purchase incentives offered in some countries. While operating costs for EVs are generally lower than their traditional equivalents, higher purchase prices, and insurance premiums can put consumers off.
- Charging concerns: The charging infrastructure is just as crucial as convincing consumers to buy EVsand e-bikes. However, even the most advanced regional markets are lacking in this area. Thailand, for example, only had 2,500 public charging points as of December 2023 – far below the government’s target.
- Hybrid approach: Fuel subsidies keep traditional vehicles affordable. While cutting them can boost EV adoption, such a step is politically fraught. Oil and gas production is a huge contributor to the Indonesia’s and Malaysia’s economies, so these markets may end up favoring hybrid vehicles.
Read more: Can Southeast Asia really pull off an EV revolution?
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