When will we all be driving an EV? this is a common question I am asked in Phnom Penh, the question I ask back is do you want to be driving one and what is stopping you?
I think it will be some time before Cambodia Reach EV Adoption completely, but the public will inevitably decide.
The English Dictionary defines a tipping point as a moment when a series of small changes or incidents becomes significant enough to cause a larger, more important, and often irreversible change.
In the automotive world, a tipping point occurs when electric vehicles make up between five and ten percent of new car sales, We are not quite there yet in Cambodia but with the large influx of Chinese EV brands coming to the market, how long will it be?
Our research suggests that electric car sales will continue to increase, reaching 5-10 percent in the coming years, then 30 percent, and eventually close to 50 percent of new sales. At that point, the mainstream consumers seeking a good deal will replace early adopters who are drawn to new technologies.
In Cambodia with such high vehicle taxation, the benefits of owning a new EV have cost implications. Simply put, you get more car for your money.
However, the general public are hesitant to switch, an inadequate charging infrastructure could hinder the post-tipping point process.
If you take a few countries in Europe and use the case of Norway. Ten years ago, electric vehicles made up only five percent of the new vehicle population in Norway. Today, four out of every five vehicles sold there are fully electric.
However, politics and the limitations of an insufficient charging network can impede Cambodia’s progress beyond the tipping point.
When you speak to consumers around Phnom Penh, and look at the mass of hybrid vehicles, approximately 50 of buyers express a preference for combustion powered vehicles. In comparison, 15 percent would prefer a full-electric vehicles, 10 percent prefer plug-in hybrids, and 25 percent prefer traditional hybrids.
Research shows that people consider electric vehicles to be better for daily driving than their gas-powered counterparts. However, the majority believes that electric vehicles are superior in terms of reducing climate change.
So, what does the future hold for electric vehicle sales in the Cambodia beyond the tipping point? The speed at which charging infrastructure expands across the country, the rate at which electric vehicle prices decrease, will play a crucial role in determining how quickly Cambodia Reach EV Adoption.