Asia stands at the forefront of the electric vehicle market revolution.

The ascent of electric vehicles (EVs) in the Indo-Pacific region is reshaping regional economies and power dynamics, with China leading in production and sales as new EV factories proliferate across Asia. Emerging economies are leveraging their late-developer status to bolster their economic prowess through substantial investments in EVs, strategic subsidies, and broader fiscal policies. Regional competition for critical minerals and between established auto manufacturers and EV newcomers is driving the technological disruption of this green technology. The revolutions in AI and green technology have sparked economic transformations that have the potential to restructure economies, creating a new set of winners and losers, with Asia poised as the fiercest battleground due to its pivotal role in the global economy and geopolitical rivalries.

Among the leading sectors in green technology, solar, wind, and electric vehicles (EVs) are at the forefront. Four-wheel EVs have become a prominent arena for competing industrial and environmental policies. Throughout Asia, new EV factories are emerging, accompanied by incentives to promote renewable and electric transportation. The rise of EVs has enabled emerging Asian economies to surge ahead of developed counterparts in adopting this new transportation technology.

China has emerged as the frontrunner in this transition. In 2023, 36% of new cars sold in China were EVs, accounting for 57% of global EV sales. Chinese EV manufacturers are projected to produce up to 36 million EVs annually by 2025.