The demand analysis for electric and fuel-based engine vehicles in Asian countries : a study from the year 2010-2022

Abstract

Electric vehicles are gaining popularity as an environmentally beneficial innovation, offering a potential long-term solution to global energy constraints and pollution concerns. Despite their advantages, the demand for EVs in many Asian countries has not experienced substantial growth. Understanding the influential factors behind EV demand in this region is crucial to promote their adoption and addressing environmental challenges effectively. This study aims to examine the demand for electric vehicles in Asian nations as well as its substitution effect on those of fuel-based engine type. This study empirically investigates the factors that influence the demand for EVs. We apply a panel data regression model to analyze the relationships between GDP, inflation, EVs price, gasoline price, and quantity of charging stations from the year 2010 to 2022 in Asia. It is found that the EV market growth in India and ASEAN member countries is negligible. However, fuel-based vehicles are still dominating the vehicle market, especially in India and ASEAN member countries. In addition, the findings also indicate that GDP, EV prices, and the quantity of charging stations have a positive and significant impact on consumer demand in Asian countries. Overall, the study suggests that each country's policies should balance their domestic purchasing power, increase the development of charging infrastructures; and provide a well-designed scheme of incentives to harmonize the transition from conventional vehicles to EVS in the transportation sector.