Green car policies in ASEAN countries: Frost & Sullivan
Varying green car policies across the ASEAN region help create combinations of market “push” and “pull”, which in turn impacts future growth demand patterns and opportunities as per Frost & Sullivan.
Associate Director, Automotive Practice, Asia Pacific at Frost & Sullivan Dushyant Sinha said, “The 3 biggest automotive nations in ASEAN – Thailand, Malaysia and Indonesia have all embarked on “low emission, high mileage” vehicles.”
He added, “The policy approach and focus are significantly different. The Thai Eco Cars have stringent product and investment requirements, whereas Malaysian EEVs cover the widest possible range of segments and vehicles. While Thailand provides a bouquet of incentives across income tax, excise duty and import duty, Malaysia has decided to customize its offerings based on how strategic the investment is.”
He said developments in the Green Car space are not just limited ASEAN’s big 3. Vietnam and Philippines are also considering various policy initiatives to faciliate investment. Hybrid Incentive Bill is on the verge of becoming a law in Philippines, and is anticipated to further support existing grass root initiatives. For eg: e-Jeepney.
As each market has a Unique pattern, different policies work for them. Thailand’s limited market requires a strong “push” strategy with Government support akin to the 1st car buyer policy. Indonesia’s growing customer base and low motorization is conduicive to growth and can propel a low cost green car move. While Thailand has a lead over Indonesia and Malaysia in the gren car market, sustainability is top priority over the next decade.