By Yutaka Sanada, Regional Senior Vice President, Asia & Oceania at Nissan Motor Corporation
South East Asia is home to some of the world's most lively cities. But whenever I'm in cities like Jakarta, Bangkok, Hanoi or Manila, I experience severe traffic congestion. Air and noise pollution are raising further concerns about the quality of living. I am sure many of you share these concerns.
Last February, citizens of Bangkok were warned to stay indoors because the city's air quality had hit dangerous levels. Several schools even decided to close their doors amid complaints of smog and respiratory issues. Luckily, this doesn't happen every day, but as urbanization increases, it will not be the last time either.
There is definitely growing awareness about urbanization and the issues linked to it like inadequate infrastructure, vehicular congestion and population density. However, some recent statistics on South East Asia are alarming -- urban populations here are expected to rise by another 100 million to 373 million by 2030, according to the Martin Prosperity Institute. Not surprisingly, cities in this region rank in the bottom half of The Economist's annual index of most liveable cities.
Yutaka Sanada
Of course, all governments and private organizations are setting targets and making progress in cutting greenhouse gas emissions and focusing on sustainable development. While targets and plans are critical to achieve the future we all want, we need to do more and do it with urgency. As an executive in an automobile company, I personally feel the responsibility to provide value to society and hope to realize mobility that makes daily life healthier.
The future of mobility
At Nissan, we are taking a holistic approach towards social issues to realize the Sustainable Development Goals (SDGs) adopted by the United Nations and specifically, we strive to promote the development of electric vehicles (EV) through "Nissan Intelligent Mobility".
EV is not just a vehicle with zero tailpipe emissions. It's more than that; it's about the symbiosis of People, Vehicles and Nature; it's about integration of EV into our homes and offices; and it's about managing our environmental dependence. A good example is our best-selling EV, the new Nissan LEAF which is an icon of Nissan Intelligent Mobility.
Good news is many consumers in South East Asia are ready to make this switch to green transport. We recently commissioned a survey by consulting firm Frost & Sullivanin six South East Asian nations. We found that one in three consumers (37%) are open to buying an EV as their next car. Consumers are also well-informed about the different technologies currently on the market, including battery plug-ins and hybrids.
In the same study, we found that governments need to play a critical role in driving adoption of EVs in this region. Most consumers named tax waivers as a key motivator for making the jump to electric.
Flexibility and convenience, including charging stations built at apartment buildings, are important consumers' decision to switch to electric. In other words, both the public and private sectors need to invest the time, energy and resources to make this work.
The case for EVs: Norway
So how can we increase the adoption of EVs? Let's take a look at Europe. Norway is a great example of how positive change is possible if the right action is taken. The government has introduced a range of incentives to speed up the adoption of EVs. This includes tax breaks and charging infrastructure. As a result, about 35% of new cars are sold with a plug and the country has a target of zero tailpipe emissions for all new cars by 2025. The Netherlands has set this target for 2030 and the United Kingdom for 2040.
Governments in this region too have taken encouraging steps toward electrification of mobility. Singapore has launched first electric car sharing program. 2,000 charging points are expected to be rolled out by 2020, up from 32 last year. And in Thailand, we recently signed a memorandum of understanding with the Metropolitan Electricity Authority to provide quick-charging outlets in households.
These are some of the many steps towards a sustainable future. Although currently only one in hundred cars sold is an EV, experts predict that figure will grow enormously in coming years. As technologies advance, battery costs come down and the cost of renewable energy decreases, the future is looking bright. It's a future in which our cities remain liveable for our families and next generations. Let's create this future together.
I am looking forward to discussing the future of mobility at the 27th World Economic Forum on ASEAN (11-13 September in Hanoi). During my meetings with several ministers and key stakeholders, I hope to discuss the best ways to keep our cities liveable. How should car manufacturers and other stakeholders work together? Please share your views by leaving a comment below.
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