Asia Pacific consumers show stronger appetite for electric vehicles

Consumers across Asia Pacific demonstrate significantly higher engagement with new energy vehicles (NEVs) compared to their Latin American counterparts, according to new research from global automotive distributor Inchcape.

The Drivers of Change report, based on surveys of 5936 respondents across 13 countries conducted in early 2025, found 83% of Asia Pacific consumers hold positive sentiment toward NEVs, compared to around 70% in Latin America.

More significantly, 26% of Asia Pacific respondents already own a battery electric vehicle (EV) or hybrid, with 57% expressing intent to own a NEV in future. In contrast, most Latin American consumers still plan to purchase internal combustion engine vehicles for their next purchase.

The research was conducted by Censuswide for the Asia Pacific portion and IPSOS for Latin America, covering markets including Australia, Singapore, Thailand, Hong Kong, Philippines, Indonesia and Vietnam in the APAC region.

Regional adoption patterns vary significantly

Country-level differences within Asia Pacific reveal varying stages of adoption readiness. Hong Kong leads with 47% of respondents reporting current NEV ownership, while Singapore and Thailand each show around one-third ownership rates. In the Philippines, despite only 14% current ownership, 70% express future purchase intent.

Australia showed more conservative adoption patterns, with only 21% of respondents changing their primary transport mode in recent years, compared to over 55% in Singapore, Vietnam, Indonesia and the Philippines.

Environmental impact emerges as the primary motivator across Asia Pacific, cited by 62% of respondents as a key factor in considering NEV adoption. This figure rises to 82% in the Philippines and 88% in Indonesia. However, 18% of regional consumers believe their vehicle choice will not impact climate change, suggesting a more mature consumer base balancing environmental values with practical considerations.

Cost remains biggest barrier to adoption

Despite positive sentiment, affordability remains the single greatest obstacle to NEV adoption across the region. Nearly 68% of Asia Pacific respondents believe NEVs are too expensive, making cost the most cited barrier. Other significant concerns include battery life (40%), public charging infrastructure limitations (34%), and driving range anxiety (33%).

The report identifies key recommendations for Asia Pacific markets, including capitalising on low motorisation rates in emerging markets like Vietnam and Indonesia, where rising incomes and growing middle classes present opportunities for early NEV adoption.

Inchcape recommends tailored product strategies reflecting local priorities, noting that safety and price top concerns in Thailand and Vietnam, while fuel efficiency drives decisions in Indonesia and financing options matter most in Singapore.

The research emphasises the need for enhanced consumer education, with 58% of Asia Pacific respondents expressing need for more information about NEVs, particularly around battery life, safety, charging infrastructure and maintenance costs.

Laura Viegas, Head of Communications and Sustainability for the Americas at Inchcape and report compiler, said the findings highlight how global mobility transition goals must be achieved through local strategies that consider consumer preferences, infrastructure maturity and cultural contexts.

The Australian findings provide relevant insights for the broader regional market, where similar consumer concerns around affordability and charging infrastructure continue to influence EV adoption rates across developed and emerging economies.

The report concludes that hybrid vehicles present a strong intermediate solution in markets where full battery electric vehicles still face adoption barriers, potentially serving as a bridge toward full electrification across the region.