Value Chain Asia Magazine | Vol.1 Issue No.1 (2023)

Watch VCA Highlights

Value Chain Asia (VCA) is the brainchild of my decade-long experience of meaningful conversations with the “logistics and supply chain” industry’s stakeholders.

Since 2011, I have been given the privilege of sitting down with leaders with remarkable stories to tell and insights to share. Their wisdom gave me an invaluable stance on how the industry reshapes and unfolds itself amidst the challenging business landscape. Wherein the fundamentals on the emphasis of talents remain critical.

Flash forward to today, what started as a concept birthed from my professional calling as a founder of Hatch Asia, an HR consulting company in Singapore, has turned into a platform of endless possibilities.

I am more than thrilled to have launched VCA, as I’ve developed a relentless passion for the logistics and supply chain industry. The emergence of VCA is a milestone that

celebrates the establishment of a common ground where voices are to be heard, and knowledge can be shared.

For us, VCA is not just a mere platform, it’s an arbiter of the present and a beacon of the future.

For editorial inquiries, contact editorial@ valuechainasia.com

Sincerely,

Amos Tay Editor-in-Chief

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WHO ARE WE?

STAFF WRITER

EDITOR-IN-CHIEF

AMOS TAY

MANAGING EDITOR & DIGITAL MARKETING SPECIALIST

CHARLENE JOANINO

CONTRIBUTING WRITER & EDITOR

KEN TNG

CONTRIBUTING WRITER

NICOLE TRETWER

TRISHA ANJANETTE BALLADARES

KRISKA GATDULA

ALGIN MICHAEL SABAC

GRAPHIC DESIGNER

YASMIN ISMONO

SOCIAL MEDIA SPECIALISTS

LAURENCE BACIA

KAMIYA GARCIA

CONTENTS

LOGISTICS

Electrifying mobility for the logistics industry

: Are EVs truly the future of the auto market?

: A look at the development of the EV ecosystem

10: Debunking EV misconceptions that may impede supply chain strategy

CHAIN EVENTS

24: On ushering a transportation revolution: Are electric cars better for the envronment?

Electric vehicle market in Asia, to thrive in the next few years

22: SCL Indonesia caps off with success, preludes Kenya event

SUPPLY CHAIN CHAMPIONS SPOTLIGHT

How does a BYD electric car fare in the global arena?

TECHNOLOGY

39: The innovations rendered by the integration of new technologies in EVs

44: Digital supply chain boosts operational efficiency and raises risk concerns

TRENDS & GEOPOLITICS

51: On EV industry race: Who will dominate the Southeast Asian market?

54: Asia’s faces EV mass adoption challenges

SOOORYA renders new uptake on EVs for the ridesharing sector

HUMAN RESOURCES

57: EV adoption scale up demand for skilled workers and professionals

Electric vehicle market in Asia, to thrive in the next few years

BY CHARLENE JOANINO AND KEN TNG

Theelectric vehicle (EV) market in Asia is growing as governments push for more sustainable transportation options in the automobile supply chain. This push for EVs aligns with global sustainability efforts to reduce dependence on fossil fuels and promote a cleaner environment at the midst of escalating climate change.

Subsidies, tax breaks, implementing zero-emission mandates, and investing in

EV ecosystems have aided to possible market growth. According to Statista’s Mobility Market Outlook, the Asia Pacific EV market can grow around USD 207 billion by 2023.

This growth is in line with the global trend as per the report by SCM Globe. Electric car sales worldwide rose by more than 40% in 2020 compared to the previous year. Prior, the market was valued at USD 229 billion in 2021. It can reach up to USD 777 billion by 2027.

Manufacturers of EV

A key player in the EV market is China, which accounts for 60% of global EV exports. Notably, based on Industrial Guide Asia‘s round-up, many leading EV manufacturers are situated in the said country.

Meanwhile, Thailand is emerging as a major hub for the production of EV. Prominent Asian brands such as Toyota, Nissan, and Honda operate in the country. Its distance to Indonesia, a nickel producer for EV batteries, also aids to its growth in the industry.

The Asian EV market is being boost by various policies and incentives. These are tax cuts, subsidies, and other forms of financial support.

Policies help usher the production and usage of EVs in markets across Asia. Countries such as India and Vietnam have particularly gained from these policies.

With the growing popularity of EVs, many newcomers to the industry are also investing in this technology. One such company is Foxconn, Apple’s largest supplier. Foxconn announced its plan to build an EV factory in Thailand by 2024. The target annual production is 150,000 EVs by 2030.

In line with this target, Foxconn and Geely Holding Group signed a strategic cooperative agreement in January 2021 to create a joint venture company that will provide OEM and consulting services for vehicles, parts, drive systems, and platforms to global automotive and ridesharing companies.

Traditional car companies are also shifting. As EVs become more mainstream, parts suppliers of internal combustion engines have found their businesses at risk of disruption.

For instance, Thailand’s top auto parts manufacturer, Yamaha Motor Parts, is feeling the heat. By specializing in exhaust systems for internal combustion engines, the company is at risk of losing its primary revenue source. In a bid to stay competitive, the company is broadening its reach. It has invested in components of EVs, such as battery packs, to diversify its product portfolio.

Automobile supply chain

The Asian auto supply chain, particularly the EV market, is a vital player in the global market for electric cars. Characterized by its vertical integration, select key stakeholders control every aspect of the value chain. They manage from getting raw materials to producing finished products.

Another unique quality of the Asian auto industry is its dominance over research and development (R&D) of solidstate batteries, which often account for about 30-40% of the price of an EV.

The Asia Fund Managers state that the solid-state battery market will hit USD 3.4 billion by 2030, with a compound annual growth rate of 18%. Japan is the current leader in R&D for solid-state batteries. Such ushers six companies among the top 10 patent holders, including Toyota, Panasonic, and Idemitsu Kosan.

In fact, Japan claims almost 68% of solid-state battery patents, with the United States coming in second at 16%. South Korea follows closely behind at 12%. Although China falls behind in the industry, significant investments in R&D for solid-state batteries are being made. Wherein, companies like Eve Energy lead the way in producing new technologies and expanding production.

This level of control has enabled Asian producers to make electric cars at a lower cost than other regions. Moreover, Asia has ample reserve of raw materials for EV production, such as lithium and cobalt, which are used in batteries. Such post a challenge for other markets, including Europe and the United States, to compete in the industry.

Currently, China is the leading producer of these elements in the region. In addition, the country has taken steps to secure mineral supplies abroad while heavily subsidizing its battery manufacturers.

Francis Wedin, the CEO of Vulcan Energy, a company that produces lithium for EVs in Germany.

Asia is a major hub for the production of EVs, with significant factories based in countries such as China, South Korea, Japan, and Thailand. Many Asian countries also have a large market for EVs, particularly in the exports section.

The economic impact of EVs

The EV automotive ecosystem, which includes various parts of electric cars, such as batteries, charging stations, and service providers has positively impacted the region’s economy.

According to the market research did by Statista, revenue in the EV industry could reach USD 207.50 billion in 2023. It could grow at a yearly rate of 14.85%. Furthermore, the EV market unit sales can reach more than eight million vehicles in 2027. From an international outlook, the most revenue will come from China.

The development of the industry has also led to the creation of numerous jobs. It includes opportunities in the manufacturing and assembly of electric cars as well as in the automobile supply chain and service sectors.

The rising demand for EVs in Asia has also fuelled investment in charging infrastructures, which are necessary for the widespread adoption of electric cars in the region. Research and Markets estimate that in AsiaPacific, the EV charging stations market is expected to

“

There’s a lot of ground to make up. China has been several chess moves ahead for a while now,

said

reach USD 69.57 billion by 2029. It will have a compound annual growth rate of 30.8% during the forecast period of 2022 to 2029.

Support and investment are essential to achieve parity in the total cost of ownership between electric and internal combustion engine vehicles. Both aid in low-cost electric vehicle models and distribution infrastructure.

The Asia-Pacific is experiencing a surge in the production of EVs. This is thanks to a combination of supportive policies and incentives, as well as an abundance of raw materials in the region.

Favorable trade policies that support the import and export of EV components, coupled with an independent automobile supply chain, have also played a crucial role in the market’s growth.

The vertical integration in the Asian EV supply chain has enabled manufacturers to produce electric cars at a lower cost while also providing improved efficiency, control over the production process and the ability to quickly respond to changes in market demand.

As a result, integrating EVs into the automobile supply chain in Asia may increase jobs as well as investment in charging infrastructure and battery manufacturers. However, more support and investment are essential to increase the adoption of EVs in emerging markets like India and Southeast Asia.

Such include government incentives for consumers to purchase EVs, funding for infrastructure development and investment in the R&D of EV technology. V

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The total cost of ownership of electric vehicles relative to internal combustion engines varies significantly amongst weaker market segments due to factors such as operating range, internal combustion alternatives, and access to charging infrastructure. These factors require new investments, which are slowed by coordination challenges impacting the economy.

said Randheer Singh, Director of Electric Mobility and Senior team member for Advanced Chemistry Cells Program at the National Institute for Transforming India (NITI) Aayog, in an interview with CNBC.

Debunking EV misconception that may impede supply chain strategy

BY KRISKA GATDULA

VALIDATED BY QUEK YANG THEE OF REPUBLIC POLYTECHNIC

Often, the supply chain strategy of an EV company is affected by the marketability of EVs. Marketing initiatives help steer demand. Without demand, the movement within the EV ecosystem could fail, which can impact the EV supply chain.

In this case, misconceptions may demotivate consumers to buy EVs. Hence, it is essential

to raise awareness about EVs and their characteristics. Especially since Asian countries are beginning to lean towards EVs as sustainable transportation solutions.

Mainly, EVs have caused concerns regarding their cost-effectiveness, reliability, economic value, and environmental impact against internal combustion engine vehicles (ICEVs).

Russell Hensley, co-leader of the McKinsey Center for Future

Hensley added that vehicles are the second largest investment that a household makes. Therefore, buying a car is a decision that takes much consideration. By knowing what affects the consumer behavior, an effective supply chain strategy can be implemented by companies.

MYTH 1: EVs’ environmental footprint is greater than ICEVs

The manufacturing of an EV indeed creates more emissions than the production of an ICEV. However, the emission of an EV is just a third of the lifetime emission of a gasoline-powered automobile, even after accounting for EV battery production and disposal.

Air pollution from factories during battery production accounts for most EV emissions. Notably, according to the United States (US) Department of Energy, EVs convert over 77% of electrical energy from the grid to power the wheels.

Select Asian countries have recognized the positive environmental impact of EVs and are investing in encouraging EV adoption. Thailand, India, Vietnam, China, South Korea, Philippines, Malaysia, and Singapore are among those ushering sustainable transportation solutions, particularly EV promotion where supply chain strategy plays a vital role.

MYTH 2: EV batteries are unsafe

Battery Management System (BMS) enables monitoring of battery temperature and performance. It aids in maintenance that could prevent electric car problems relating to batteries.

The BMS includes management of the charging or discharging of the battery pack and controls the temperature range as it functions. Therefore, BMS help in the avoidance of EV battery overheating.

According to Quek Yang Thee of Republic Polytechnic, usually, the traction battery is able to operate at ambient temperature in the range of -30⁰C to 65⁰C. Ideally, the commonly-used Li-ion battery has an operational range

of 20⁰C to 40⁰C. EV operating out of this range will have negative impact on the vehicle range.

Yang Thee added that there are thermal sensors that sense the temperature of the batteries. They will trigger cooling system to maintain the battery at acceptable temperature. Meanwhile, the Artificial Intelligence in the vehicle will alarm the driver or even shut down operation when the temperature is way too high.

Moreover, electric batteries are included on EVs only after a series of safety verifications like crash and combustion tests. EV suppliers do such initiatives to ensure that the batteries do not pose a threat to the users.

MYTH 3: EV batteries need multiple replacements and are non-recyclable

Once depleted, EV batteries can be recycled or repurposed as storage units. EV batteries can be recycled to extract out the rare earth material. These are valuable elements in making EV batteries like lithium, cobalt, and nickel.

Yang Thee, shared that a good example is that some EV batteries’ second lives comprise being the energy storage for a solar powered charging station.

In fact, electric car makers like Tesla and Chevrolet offer warranties upon reaching eight years. The latter considers up to 100,000 miles, while Tesla can be as high as 150,000. The move was to mitigate concerns about EVs needing multiple replacements.

MYTH 4: EVs do not provide enough mileage

The speed of an EV is no different from its gas-powered counterpart, which normally can run 25 km to 50 km per liter. EVs range is 95 km to 685 km per charge.

For example, according to the Korea Transportation Safety Authority, automobiles in South Korea travel an average of 43.9 kilometers daily. Such makes EVs suitable for everyday use, which is advantageous for EV suppliers.

“For vehicle range, we will reach a ‘good enough’ number, especially as charging infrastructure gets built out in more and more places,” noted Scott Case, CEO of Recurrent, a US-based automotive ventures portfolio company.

Distinctively, an EV accelerates quickly, as the electric motor generates 100 % of its available torque instantly. In comparison, an ICEV must ‘rev up’ to reach its maximum torque and power.

Thus, further showcasing that EVs are one of the best sustainable transportation solutions in the automobile industry.

Adoption has not gone faster because there is a hesitation in pivoting from something so trustworthy in the internalcombustion engine to something relatively new technology,

said

Mobility in the Americas.

MYTH 5: EV takes forever to charge EVs as transportation alternatives

The charging of an EV depends on various factors like current charge level, battery size, and power output of the charging station. An EV can be charged using different levels, level 1 (120 V), level 2 (208 V – 240 V), and level 3 (400 V – 900 V).

Charging stations with level 2 and level 3 voltages are faster alternatives for charging EVs. They can set a range of 19 kilometers to 1900 kilometers per hour.

A fully depleted EV has a longer charging time for a level 1 outlet at home. Considering the range and average kilometers EV drivers travel daily, such a situation is rare.

On the side, good-capacity batteries from EV suppliers, paired with a small charger, would increase the time needed to charge the battery, irrespective of the outlet capacity.

Debunking EV-related myths not only help improve supply chain strategy of companies, it also help consumers make informed choices and bridge the barrier to adopting newer technologies. It opens up possibilities for improving the future of customer experience in the supply chain automobile industry.

The deployment of EVs is an excellent initiative by select governments to reduce carbon emissions. Wherein, sustainability and zero-emission goals are pushing Asian countries to adopt EVs as an alternative to ICEVs.

EVs aid in reducing reliance on fossil fuels, improving air quality, and are becoming a cost-effective transportation option. Dispelling EV myths will encourage more people to adopt EVs as everyday cars. V

A look at the development of the EV ecosystem

BY CHARLENE JOANINO

Transportation across the world has come a long way toward the emergence of an electric vehicle (EV) ecosystem. From the early steam engines to the prevalent gasoline-fueled engines, now, electric-powered vehicles have emerged.

With the advent of EVs, we face a new era of the transportation revolution in Asia, in which a cleaner and greener future is within reach. Yet to move forward, there is a need to look at the past. It provides a prelude and overall view of the development of the EV ecosystem within the automotive industry.

Early inventions

After a myriad of attempts, French army captain Nicolas Joseph-Cugnot has made the "fardier à vapeur." It is the world's first working full-size "self-propelled mechanical land vehicle" that marks a transportation revolution.

In the early 1800s, Richard Trevithick developed the “first high-pressure steam engine and first working railway steam locomotive,” which marked a turning point for the commercialization of steam engine vehicles.

Modernization of vehicles

Scottish inventor Robert Anderson developed a motorized carriage in the early 1830s. However, the batteries he had used were not rechargeable. In the same decade, Robert Davidson built a prototype of his electric locomotive.

By the 1840s, Davidson had finished “Galvani,” an enhanced version of his prototype. It can tow six tons at 4 mph and run 1.5 miles.

Then, German Engineer Nicalaus Otto invented a gasoline-fueled four-stroke cycle engine in the 1860s. It was an alternative to steam engine, which was prevalent at the time.

Leaping into the 1880s, Karl Benz developed the “world’s first practical automobile” with an internal combustion engine. It first hit the road by mid-decade and a year later, Benz had his patent.

Meanwhile, it was Engineer Ferdinand Porsche who invented the first hybrid car. It was a two-wheel drive that used a gas engine and an electric motor in the 1890s.

The first mass-produced electric vehicle (EV) was Honda Insight. Said car hit the roads of the United States in the 1900s.

By the 1980s, the Japanese automotive industry experienced a “Golden Age” marked by significant advancements in technology and manufacturing

Continued in page 15

Into the future practices. One of the key factors driving this progress was a focus on supply chain efficiency.

Noteworthy Japanese concepts like Gemba, Kaizen, and Just-in-Time or JIT were used in the decade. Whereas, said concepts aid in producing more vehicles quickly and with greater precision than their competitors.

Moving into the 21st Century

The Revolutionary Electric Vehicle Alternative, or REVA, went out in 2002. It was produced by the Reva Electric Car Company as the “first zero polluting EV” in India.

In 2003, the entrance of Tesla Motors into the electric transportation market became a significant driver of electric automobile adoption. Prior to Tesla’s entry, EVs were generally viewed as niche products with limited appeal to mainstream customers.

However, Tesla’s success in developing highperformance EVs with long ranges and advanced features has helped shift perceptions. It generated greater interest in transportation alternatives for internal combustion engine vehicles (ICEVs).

Notably, the Tesla Roadster was released in 2008. Coinciding in the same year, BYD, a Chinese manufacturer, released the “world’s first mass-produced plug-in hybrid electric vehicle (PHEV).”

By 2009, the Mitsubishi i-MiEV became known as the “world’s first modern highway-capable EV” that was massproduced. It was first released in Japan.

On the side, the Nissan Leaf gained the moniker “world’s all-time top-selling EV” and won several awards. Based on an early 2019 press release by Nissan, the Leaf became the first EV to go beyond more than 400,000 sales since its release in 2010.

Select governments and companies not only in Asia but worldwide are recognizing EVs as a sustainable means of traversing roads. More related efforts are becoming apparent such as promotions and investments.

In 2020, the Environmental Protection Agency (EPA) announced new standards that required automakers to improve fuel efficiency by 1.5% annually. Then, in 2021, the European Commission proposed a new set of regulations that would ban the sale of new ICEVs in the EU by 2035.

These regulatory changes signal a growing focus on sustainability and cleaner alternatives. They drive the shift towards EVs and the development of more efficient and environmentally-friendly supply chain automotive.

Several efforts progressing the EV ecosystem are underway across the world in 2022. Headlining the stint in Asia are China and South Korea.

In China, for example, the government is ushering the development of a national charging network, with plans to build 4.8 million charging points by 2025. Also, China is currently the largest producer of EV batteries, with local manufacturers such as CATL and BYD dominating the market.

Meanwhile, electric utility companies in South Korea are collaborating with automakers and charging infrastructure providers to build a nationwide charging network. Manufacturers, such as LG Chem and Samsung SDI, are investing significantly in battery production.

Overall, the rise of EVs is transforming the automotive industry. As more countries in Asia invest in EVs, further developments in charging infrastructure, battery production, and other related services may soon be apparent.

Such will create new business opportunities and provide new transportation insights towards a more sustainable future. In 2023, the EV ecosystem will continue to evolve due to the gradual production of EV innovations. V

SUPPLY CHAIN

Are EVs truly the future of the auto market?

BY KEN TNG

Asthe world moves towards sustainability, the electric vehicle (EV) industry is gaining momentum in the auto market. EV promotions are being done by select public and private entities globally. These efforts have led to a paradigm shift in the automotive industry.

In recent years, EV supply chain operations are continuously rendering and adopting innovations. Such growth swerves limitless potential. Hence, EVs are slowly but surely becoming the alternative for internal combustion engine vehicles (ICEVs) and the auto industry’s future.

The creation of the United Nations Framework Convention on Climate Change in 1992; the Kyoto Protocol, 1997; and Paris Agreement, 2015 have pressed forward issues on detrimental human consumption of natural resources, one in which climate change has been a consequence.

In the past three decades, world leaders have continuously delved into the topic of climate change. Together, they have been developing counter-initiatives against global warming. Now, there are technologies readily available in the market that can aid in alleviating the strain on the environment.

There are more than 1.7 billion motor vehicles on the roads globally. It accounts for more than 20% of global CO2 emissions. Hence, it makes perfect sense that one of the key technologies in recent times addresses how both people and goods moves using sustainable cars.

As such, EVs usher the hope that they may aid in solving the woes of sustainability faced by the transportation sector and in climate change mitigation. The exponential growth of EVs on the roads is now apparent due to the successes of brands like Tesla and BYD.

There are approximately 13 million EVs globally by the end of 2021. The number renders a significant margin from only about 100,000 EVs in 2012 that were plying roads worldwide. However, EVs introduction is not without its fair share of obstacles and challenges in which supply chains play a major role.

Gaining a better grasp of EV supply chain visibility in Asia and worldwide is crucial in deploying and adopting EVs. Visibility aid in the optimization of operations.

The production of EVs requires a complex supply chain. It includes several materials, with a particular focus on EV battery components. Batteries need rare earth materials such as lithium, cobalt, and nickel. All of these raw resources are from specific regions around the world.

About 98% of global lithium production takes place in Australia, Latin America, and China. Cobalt production happens in the Democratic Republic of Congo (DRC), Russia, and Australia. Nickel production occurs in Indonesia, the Philippines, New Caledonia, Russia, and Australia.

Many source countries of raw materials for EV batteries have weak labor laws. Also, they often have poor working conditions, low wages, and rampant exploitation of vulnerable workers.

Likewise, geopolitical issues also affect the EV battery supply chain. One example is the ongoing conflict between Ukraine and Russia. It has led to concerns about the supply of critical materials, such as nickel and cobalt, which are produced in said regions.

Meanwhile, the environmental concerns of mining such metals are also a significant issue. The extraction of these critical raw materials often has environmental impacts, including deforestation, soil erosion, and water pollution.

The concerns pose significant risks to the supply chain of raw materials. In turn, there are calls for greater transparency and accountability in the production of EV components.

Raw material extraction Battery

As mentioned above, one of the most critical components of EV production is the batteries powering the vehicle. They account for a significant portion of the production cost. As EV production scales up, ensuring the quality and reliability of battery components remains a major challenge for manufacturers.

China dominates EV battery production with around 60% of the global share. Such has been attributed to the government’s support for the industry. It includes subsidies,

Continued in page 33

Ken has thrived in the supply chain and management consulting space for more than ten years. With a strong focus on performance improvement and operational excellence, he is currently promoting commercial excellence in DHL Supply Chain (DSC).

Components of an EV

1. Traction battery pack – Also known as electric vehicle battery (EVB), the traction battery pack serves as an electrical storage system that powers an EV’s electric motors

2. DC-DC Converter – Renders the required voltage in charging the auxiliary battery and distributes the battery’s power accordingly

3. Electric motor – Enables the wheels of an EV to rotate by turning electrical energy into kinetic energy

4. Power inverter -Transforms a battery’s DC power into AC power

5. Charge port – Intended for charging the battery pack

6. Onboard charger – Turns AC supply to DC supply and monitors as well as controls a battery pack’s internal current flow

7. Controller – Regulates the electrical energy provisioned by batteries into electric motors

8. Auxiliary batteries – These batteries can serve as an alternative to the main battery and enable car charging

9. Thermal system (cooling) – Maintains the temperature of an EV’s main components

10. Transmission – Moves the electric motor‘s mechanical power to the wheels

SCL Indonesia caps off with success, preludes Kenya event

BY CHARLENE JOANINO

More than 200 delegates joined the latest edition of Supply Chain and Logistics (SCL) Indonesia held in Jakarta, last May 3 to 4. This year’s theme was “Building Robust End-to-End

Supply Chains.” In line with SCL Indonesia, another event will happen in Nairobi, Kenya on August 17 to 19.

“The event involves engaging discussions on how to take supply chains to the next level using a blend of supply chain expertise and the latest technology offerings,” said Harsh Pawar, focal person of SCL Indonesia and part of Infinity Expo, a business media company, which spearheaded the event.

He added that SCL Indonesia’s roster of over 30 speakers had delved on technology solutions. These are for building high-efficiency supply chains using Blockchain, Artificial Intelligence (AI), Internet of Things (IoT), Telematics, and other related topics.

The speakers underlined their experiences and best practices in designing smart warehouses, building supply chain visibility, and leveraging big data analytics.

According to Pawar, SCL Indonesia included case studies based on the perspectives of users who had successfully applied these changes to transform their supply chains.

Among the talks were about “Industry 4.0” and “Imperatives to Connect Your Manufacturing Ecosystem To Optimise Processes.” Pawar also noted the increasing

importance for manufacturing lead enterprises to develop smart factories.

“With a deeper understanding of IoT and AI-connected manufacturing, and resilient supply chains, you will be able to create new levels of growth,” he said.

A highlight is the focus on streamlining supply chain effective transport and warehouse management strategies done by Keyfiled. Also, a noteworthy part of the event was IBM’s sharing of insights on building autonomous intelligence into the supply chain.

Infinity Expo has been doing SCL events across the world. They are a top-tier company that connects people across the supply chain and logistics industry.

For more information on the upcoming SCL event in Kenya, visit https://bit.ly/KenyaSCLBrochure or register at http://kenyascl.com.

On ushering a transportation revolution: Are electric cars better for the environment?

BY ALGIN MICHAEL SABAC

Electric cars are making a case in a transportation revolution as motorists look for a sustainable means of hitting the road. Using electricity instead of gasoline makes electric vehicles (EVs) in Asia cost-efficient. It also renders decarburization. In fact, in every

EV, carbon dioxide is reduced by 1.5 million grams every year.

At present, the Asian vehicles market is on track toward significant growth and is creating chances for value creation across the supply chain. The said market is steered by technology, energy, and financial players who deliver value propositions.

EV’s stake in going ‘Green’

In every Asian country, EVs’ entry into the market and the level of adoption are affected by the government, which is a key stakeholder in supply chains. Specifically, a government’s power to render laws, restrictions, and subsidies could either progress or hamper the EV transportation revolution.

China, Japan, and South Korea have made comprehensive policy frameworks to support EV adoption. Meanwhile, emerging Asian countries like Thailand and Indonesia have set targets for EV production.

Emerging Asian markets are also becoming the largest micro-mobility hubs where electric two-wheelers (E2Ws) are a predominant mode of land travel. By 2030, India and Indonesia are projected to become the world’s second and third-largest E2W markets. They may have more than 60% annual growth rate.

According to Susan Anenberg of George Washington University, PM2.5, and global ozone-related premature mortality from vehicle tailpipe emissions increased from 361,000 in 2010 to 385,000 in 2015, which is one of the major causes of air pollution and climate change. PM2.5, a particulate matter, badly affects health, while Nitrogen oxides (NOx) may damage crops and aid in causing acid rain.

Although NOx limits have been apparent in major markets, traditional vehicles emit much more NOx in actual driving situations. India, China, Europe, and the United States are the four biggest vehicle markets. They have an estimated 70% impact on the said consequences.

Utilizing EVs usher lesser carbon production than

traditional vehicles. It’s one way of alleviating the said effects. EVs are much cleaner and more environmentally friendly. It’s because they lack internal combustion engines and instead rely on electric economy motors.

Notably, EVs’ emissions will continue to decline as the power grid continues to transition toward renewable energy sources. Doing so will help reduce air pollution and usher a transportation revolution.

Alleviating global warming

Electric cars produce half of the greenhouse gas emissions of a regular car. On average, EVs are about 30% cleaner than vehicles with internal combustion engines that burn fuel. Such makes EVs better options in transportation services.

“We discover that today’s typical electric vehicles emit only half as much greenhouse gas as a traditional passenger vehicle. This finding supports government initiatives to promote electric vehicles as a component of their carbon reduction plans

Dale Hall, a Senior International Council on Clean Transportation Researcher, stated.

Many Asian countries are taking the effort to become eco-friendly. Singapore (SG) is aiming to have fully electric vehicles on its roads by 2040. Such is part of SG’s commitment to address climate change.

However, it will take a while as only a small portion of the current private vehicles in SG run on lower-emission hybrid engines or are fully electric.

The Indian government promote the production and use of EVs in the nation by improving charging infrastructures. There are now 1640 public EV charging stations in India. The government initially focus on nine megacities and then had more public EV charging posts across the country.

Indonesia, one of the world’s top carbon polluters, aims to reduce its pollution by 29% by 2030. Said country hopes to achieve net-zero emissions by 2060 or sooner under the Paris Agreement to fight climate change. In order to achieve this goal, there is a need for more investment in Indonesia’s forestry and energy sectors. This would be possible through international climate finance.

As one of the world’s largest greenhouse gas producers and a rapidly growing economy, Indonesia has the potential to boost its economy and at the frontline of the transportation revolution. It also can reduce its deficit, create jobs, and improve its air and water quality through climate action. A total electric vehicle ecosystem can help gain that in a larger aspect.

Danny Marks, an Assistant Professor at Dublin City University, predicted that the dual biodiesel and current EV policies would no longer be fitting after ten years. He also added that increasing EV production should be a priority to achieve global climate goals.

Acclimatization of Asian vehicles

Producing EV motors can help progress Asia’s economy and protect the environment. Electric cars cut expensive oil imports and lessen air pollution.

More than 7 million died prematurely from air pollution in 2022 globally, and 2.4 million casualties are from Southeast Asia. Said death tolls are from the tiny diesel soot and gas emissions from cars and trucks. In this sense, EVs can aid in lessening the said impact.

The benefits of the transportation revolution on EV to the environment arise from reduced damages relative to the gasoline vehicle it replaces. Compared to a gasolinepowered vehicle, air pollution due to an electric car is lesser.

However, EVs also produce pollution during production. This is due to the fact that the complex and large batteries used in EVs require a lot of energy to produce.

Additionally, the logistics of the operation are complicated, and the mining and processing of materials like lithium and cobalt used in electric car batteries can also aid in causing pollution. More than a third of the CO2 emissions from an EV’s lifetime is due to the said batteries.

Despite this, the air pollution from factories producing EVs is still lesser than traditional cars and it can be one of the air pollution solutions. Also, EVs typically use cleaner electricity sources to charge their batteries and don’t emit emissions while in motion.

The environmental benefits are even greater if electric cars use renewable energy. Hence, it’s no wonder that as Asia gains ground in the EV transportation revolution, it is noticeable that governments are making headway toward their climate change goals.

Due to the entry of EVs into the Asian market, the automotive supply chain has been gradually shifting to usher sustainability by helping preserve the environment.

Now, more than ever, there is a need to intensify efforts to further its market by developing more charging infrastructures. More importantly, joint efforts from the government and private sectors would primarily steer the roll-out as well as adoption of EVs in Asia. V

Electrifying mobility for the logistics industry

INSIGHTS BY JIN CHAN | Blueshark Ecosystem Sdn Bhd Group COO (ASEAN)

Human mobility is undergoing a revolution. At no point in history has there been a more pronounced shift towards cleaner propulsion of transportation since the proliferation of the internal combustion engine (ICE) that produces carbon dioxide and causes pollution.

The logistics and supply chain industry are in many ways at the forefront of this sea of change. Said industry is ahead of the curve as more companies are now beginning to embrace electric vehicles (EVs). They lean towards improved

operational efficiency of deliveries, reduced emissions, and economic benefits of green mobility.

Meanwhile, the fast-paced advancement of EV technology, erecting of infrastructure, government subsidies, tax exemptions, and various economic factors have contributed considerably to EV adoption. In turn, there is an increase in the use of EVs for transporting goods for large and smallscale businesses alike.

The benefits of going electric

EVs cost approximately ten times less to ‘refuel’ and can reach 90%-95% energy efficiency compared to ICEs with 17%-21%. They also contain much fewer moving parts than traditional ICE vehicles, reducing maintenance and enhancing reliability.

EVs are also incredibly efficient, converting over 77% of the electrical energy from the grid to driving power compared to 12%-30% power conversion for ICE vehicles. Compared to ICEs, EVs boast significantly lower fuel costs with charging stations and battery swapping proving a more cost-effective way to refuel.

Additionally, EVs use less energy in stop-and-go city traffic. This reduces noise pollution and air pollution making them a highly compelling option for delivery and courier services, helping businesses achieve a better bottom line.

For fleet operators, the concern is not only limited to managing the fleet, but the total costs to do so and to maintain it. For example, there is the cost of procuring the fleet, your capital expenditure.

Also, there are increasingly costly operational expenses like rising fuel costs, depreciation, high repair costs, and days off the road to contend with. Consequently, the impact on consumers is that service quality and customer

satisfaction drop.

EVs can also address the Environmental Social and Governance (ESG) equation Wherein, companies are now required to report and offset their carbon footprint or face penalties.

Maintaining delivery fleets comprise of ICE vehicles is simply not sustainable and going electric can create significant additional value for companies. Meanwhile, EVs can render ongoing cost savings such as lower energy costs, lower capital expenditure, depreciation and repair costs, and improved driver and rider safety.

Barriers to overcome on the road towards industry progress

High vehicle costs render the need for more standardized charging systems to catalyze mass EV supply chain scaling and optimization. There is a lack of charging locations, and long wait times for charging are the top barriers hindering fleets and consumers from adopting EVs.

The shift to EVs will require collective action and an ecosystem of partners, including governments, charging infrastructure providers, automakers, and even consumers

working cohesively to map out and bridge the transition to EVs.

In 2015, privately owned vehicles accounted for 29.4 million, of which 13.8 million are cars and 13 million are motorcycles. Due to Malaysia’s reliance on these vehicles, the transportation sector in Malaysia is the second biggest polluter of carbon dioxide emissions after electric power generation.

The carbon dioxide from the said vehicles renders 96% of all greenhouse gas emissions. Such serves as a wakeup call for everyone to rethink choices before it escalates into a problem into an unresolvable problem.

The logistics and supply chain industry is a major contributor to this phenomenon. This is due to the huge volumes of ICE vehicles by large fleet operators that ply the first to last mile to keep the country and the economy ticking.

Conditions and factors encouraging EV adoption

Many governments are now driving the shift to EVs via policy and incentives and with the increasing ESG commitment from governments across the region, the EV

agenda is no longer a “nice to have”, but a mandate, and this responsibility is shared at the corporate level.

By adopting an integrated solution to electrify the firstto-last mile, fleet operators can meet their ESG targets and lower TCO, CAPEX/OPEX, and carbon footprint. At the same time, they can enhance their green credentials.

Government policies to support the growth and transition to EVs and related infrastructure are expected to remain prominent market drivers. Malaysia committed to net zero carbon emissions by 2050 at the earliest.

The Low Carbon Mobility Blueprint (LCMB) 2021-2030 aims for EVs to achieve at least a 15% share of the total industry volume (TIV) by 2030. It covers the erection of 10,000 units of charging facilities by 2025.

The Malaysian government’s various initiatives and exemptions for whole import duty, excise duty, and sales tax for locally-assembled EVs until 31 December 2025. In the recent Budget 2023 announcements, they have been also very encouraging for EV adoption and the decarbonisation of the transportation industry in Malaysia. Incentives support EV manufacturers. Thus, they encourage EV adoption while elevating the EV industry and ecosystem expansion.

EVs and logistics: electrifying first-tolast mile transport

The logistics sector is an ideal sector to promote EV usage in ASEAN as it operates in targeted areas. Its operations will lead to rapid infrastructure expansion, such as more and greater concentration of charging stations in any given area.

This could lead to wider adoption of EVs by the consumer market, catalyzed by an expanding logistics EV infrastructure. With the rise in popularity of EVs for both the corporate and consumer sectors, it is inconceivable that such expansion would not go hand-in-hand.

With most of the world aiming for carbon neutrality in the future, EVs’ impact on the transportation and logistics industries will become increasingly certain over time. Wherein, ICE vehicles could be phased out sooner than expected.

For example, logistics giant DHL plans to electrify 60% of its overall fleet of vehicles by 2030, with close to 200 EVs in Malaysia alone. Blueshark’s studies compare the riding costs of ICE motorcycles against Blueshark R1 2WEV over 100km in several ASEAN countries.

Given the prevailing petrol price and electricity tariffs, it shows that the Blueshark R1 is eight times cheaper to run over 100km compared to an ICE motorcycle in Malaysia. It is even cheaper in certain neighboring countries.

Additionally, Blueshark had a pilot program with Petronas. It involved 50 p-hailing delivery riders who experienced the R1 Smart Electric Scooter, first-hand over a month on Malaysian roads. They covered 108,000 km.

The 4,080 battery swaps done during the stint were well received with 97% of riders concluding that battery swapping is the way to go. Doing so enabled a faster, easier and cheaper mode of transport. Thus, demonstrating the feasibility of Blueshark’s first-to-last mile electrified platform for the logistics industry.

Blueshark sees 2WEVs and battery-swapping technology as crucial to encourage and hasten the widespread adoption of EVs. They overcome issues

such as long recharge times, range anxiety, and battery lifecycle management.

Also, they are easier to roll out, cheaper to procure, and can assimilate into current lifestyles and practices more so than their four-wheeled counterparts that can’t use battery-swapping technology

Foresights on the logistics industry

Electric mobility is rapidly growing across the world and transportation companies are also converting their existing fleet to serve the first-to-last mile in logistics.

Logistics companies will need to invest in charging infrastructure and adapt their operations to derive the maximum benefit in terms of cost savings and operational efficiency that EVs can provide.

Overall, EVs will positively impact the Malaysian logistics industry in the coming years. The key benefits are reduced emissions, lower capital expenditure, and operating costs, lower energy costs, and increased efficiency.

On the side, the adoption of EVs in the logistics industry could also create opportunities for innovation, such as the development of new charging technologies or the integration of EVs with smart logistics systems.

Electromobility is not merely an ambition. It is a significant move towards a more liveable future. EVs are where the world is heading in terms of how people and goods are transported, invariably and almost certainly, toward an electrified future.

ABOUT

Blueshark Ecosystem Sdn Bhd is an Electric Vehicle (EV) tech mobility company pioneering electromobility and game-changing energy solutions for the world. The company power smart mobility and swappable energy solutions by leading the charge on green mobility and green energy for all.

From page 19

investment in research and development, and a large pool of low-cost labor.

However, the US and China conflict over semiconductors has rendered trade sanction on China. The said sanction has caused strained relations between two of the world’s major superpowers.

Battery supply and technology mostly originate from China. Hence, China may hold the chips as retaliation as the world moves towards greater battery consumption.

The lack of global regulations and regulatory bodies governing the circular economy of batteries is also a significant challenge. Currently, there is no clear policy on whether automotive or battery manufacturers should be responsible for the returns of batteries.

This issue has significant implications for the returns supply chain. Also, the policies put in place could impact the supply chain for either industry.

Despite the challenges, advancements in technology to improve the quality, reliability, and efficiency of the production of batteries for EVs. For instance, solidstate batteries use a solid electrolyte instead of a liquid electrolyte. They have the potential to improve battery performance significantly. These batteries are also safer, with reduced risks of leakage or explosion.

Furthermore, there are efforts to develop a circular flow model of the economy for batteries. It involves recycling used batteries to extract valuable materials, which can then be used to produce new batteries. However, the lack of regulatory frameworks and policies to govern the recycling of batteries remains a significant challenge.

EV charging infrastructure for the transportation sector

As the global transition towards sustainability in the auto market accelerates, the supporting charging infrastructure for EVs faces significant supply challenges. With the

exponential increase, infrastructure production struggles to keep up with demand. It places a strain on the industry.

Currently, the three largest producers of chargers are ABB, Siemens, and Schneider Electric. All of which have their main businesses entrenched in other forms of engineering.

This presents a significant barrier to the entry of new suppliers since the cost of competing with established companies may be prohibitive. Also, selling prices may not allow new suppliers to become profitable.

Furthermore, the lack of standardization in the industry is creating further challenges for the supply of charging infrastructure. Adding to the complexity are the fragmented regulations by the governing bodies of different countries.

Infrastructure manufacturers will need to adopt different standards when supplying in different countries. It causes the need to have multiple different manufacturing approaches. This means that the supply of charging infrastructure is already tight, and these regulations are only making it tighter.

Standardization will reduce costs and provide greater accessibility to consumers, ultimately driving demand for EVs. Thus, there needs to be greater collaboration between auto manufacturers and charging infrastructure producers to standardize charging systems for EVs in the auto market.

Governments can also play a key role in supporting the industry by providing incentives and implementing regulations. The initiative will promote the development and expansion of charging infrastructure.

Addressing the need for skilled labor

The production of EVs should have a paradigm shift in manufacturing technology, and new battery technology must advance at a rapid pace. Additionally, modern vehicles require software and hardware integration, which

requires skilled developers.

Conventional manufacturing technologies in automotive production are outdated. Moreover, companies will need to train and upskill their existing workforce or hire new employees with the necessary skills, which can be timeconsuming.

Battery technology needs to evolve constantly to become more efficient and streamline the manufacturing practices of EV battery manufacturers. Doing such will aid in achieving economies of scale and bring down the cost of battery production.

This fast-paced evolution renders the need for highly skilled and talented individuals. However, there is a shortage of such talent in the market, and companies may find attracting and retaining skilled employees challenging.

Moreover, modern vehicles require many different computer programs to run, from the timing of fuel injection to how much oxygen your engine receives. With the advent of vehicle electrification, this need is even more significant.

Talented software developers are in demand in the EV industry. They are needed to ensure electric motors are running at optimum efficiency. Also, they make the user interface in the infotainment system user-friendly and the software and hardware integration more seamless than ever.

Although there is no lack of skilled software developers in the market, finding talent that is entrenched within the requirements of the auto industry and transportation sector is challenging.

Skilled labor shortage can significantly impact the EV industry’s development and growth. Companies will face certain challenges if they cannot find the necessary skills within their workforce or through external hires.

Said challenges may slow down or lessen efficiency in production, raise quality issues, and increase production costs. Furthermore, skilled labor shortage can delay the innovation and development of new technologies. It will ultimately impact the competitiveness of the EV industry.

Working with specialized logistics suppliers

The production of EVs is quite different from that of traditional gasoline vehicles. It requires specialized logistics solutions. One of the primary challenges is the transportation of EV batteries.

Unlike traditional automotive parts, batteries are quite large, heavy, and classified as dangerous goods. As such, transporting them across continents requires new methods of packaging and movement. Additionally, the speed and delivery reliability of the transportation of batteries poses a significant challenge.

In addition to transportation, warehousing and supply chain solutions also need to be refreshed by third-party

logistics providers due to the dangerous nature of batteries. These logistics providers will also have to ensure compliance with the various regulations governing the storage of batteries across the different countries they are looking to operate in.

Another challenge faced by specialized logistics suppliers is the remapping of spare parts logistics networks for both auto and infrastructure manufacturers. All the requirements for where the parts must be and what service level agreements should be relooked. These are crucial, especially for infrastructure manufacturers with differing service levels agreed upon with local governments or private companies.

Finally, there is a lack of returns logistics providers as the industry comes to terms with which stakeholder should be the responsible party. The lack of clarity in this regard has significant implications for the returns supply chain.

Toward better EV supply chain optimization

In conclusion, the EV sector is a growing industry that continues to attract new stakeholders. Wherein, the growth trajectory of these sustainable cars shows no signs of slowing down.

However, as the industry continues to expand, it is important that world governing bodies introduce rules and regulations in a well-thought-out and coordinated manner. This will ensure that new products are safely introduced to the market while minimizing any potential negative impact on the environment and society.

Furthermore, third-party logistics providers have an important role to play in the EV industry. By looking into new solutions and services, they can support battery, vehicle, and charging infrastructure manufacturers in multiple ways, such as in achieving efficiency in production.

Additionally, the supply chain industry must adopt new technologies to ensure these services are sustainable and environmentally friendly. They should refresh their transport fleets with EVs and adopt green warehousing. Doing so can ensure that the logistical and transportation support does not offset the positive changes brought about by the EV industry.

As the demand for sustainable cars and the EV industry grows, all stakeholders must work together toward success. It involves not only manufacturers and logistics and supply chain management providers but also policymakers and regulators.

With the right approach, the EV industry has the potential to revolutionize the transportation sector. It will also help achieve a more sustainable future.

It is important to be mindful of the challenges in the paradigm shift in the auto market and work proactively to address them. With collaboration, innovation, and a shared commitment to sustainability, the EV industry will be progressive for generations to come.

How does a BYD electric car fare in the global arena?

BY CHARLENE JOANINO AND ALGIN MICHAEL SABAC

When it comes to the roster of choices, China’s BYD electric car is one that is hard to miss. BYD, short for “Build Your Dreams”, is a leading Chinese manufacturer of electric vehicles (EVs), rechargeable BYD batteries, and various other products.

In the Asian market, BYD’s influence is particularly significant. The company’s success in China has aided in the surge in EV adoption. It ushered other automakers to follow suit and compete. This intense

competition has pushed the industry towards rapid innovation and development, making Asia a hotbed for EV technology.

The company’s BYD EV portfolio includes a range of vehicles, including passenger cars, buses, trucks, and forklifts. BYD also produces its own BYD battery system, energy storage solution, solar panel, and BYD charging station. Wherein, BYD’s Blade Battery has become one of the soughtafter commodities of other automakers.

A distinct approach

BYD’s uniqueness lies in its vertically integrated business model, which allows the company to control every aspect of its EV production. This involves from BYD battery manufacturing to vehicle assembly. Thereby, ensuring higher quality and cost-efficient offerings.

As reported by PanDaily, lithium carbonate prices skyrocketed during 2022 and battery supply became inadequate. Automobile manufacturers had no choice but to accept higher battery costs. And there lies BYD’s key advantage which is the ability to produce its own BYD batteries at lower costs than competitors.

BYD has also been successful in developing innovative solutions for the transportation sector. One of which is the company’s e-platform 3.0. This modular platform enables rapid development and customization of EVs and allows BYD to cater to various markets.

BYD has been steadily increasing its presence in the global EV market, with a strong focus on Europe and Latin America. The company’s strategy includes forming strategic partnerships with local governments and businesses, and the development of charging infrastructure to promote the adoption of EVs.

Electric cars and expansion

BYD’s product lineup includes both full EVs and plug-in hybrids, offering consumers a wide range of choices. The plug-in hybrids, such as BYD hybrid SUV Qin and Tang, combine the benefits of electric power with the flexibility of a gasoline engine, making them attractive to prospective buyers.

Additionally, BYD’s electric cars use AI to analyze data from various sensors in the car and predict when maintenance will be needed. This helps drivers to schedule maintenance before issues become serious, which improves the reliability and longevity of the car.

According to Reuters, the said Chinese firm intends to accelerate sales both domestically and internationally through its latest lineup of battery electric vehicle (BEV) products, including the Seal model.

Meanwhile, Bloomberg shared that BYD intends to build plants in three Southeast Asian nations, including Vietnam, the Philippines, and Indonesia. The Chinese automotive powerhouse is reportedly in the “advanced stage of negotiations” with the Philippines, according to an interview with the Philippines’ Department of Trade and Industry’s IDG Undersecretary Ceferino Rodolfo.

“The mere fact that BYD is scouting for auto manufacturing sites in Southeast Asia highlights how global it is setting its sights,” said Taylor Ogan, CEO of China-based hedge fund Snow Bull Capital.

Battery technology

At the heart of BYD’s EVs is the company’s proprietary battery technology, known as “Blade Battery.” This BYD battery technology utilizes lithium iron phosphate (LFP) material, offering enhanced safety and performance compared to traditional battery designs.

BYD’s Blade Battery boasts several advantages over traditional lithium-ion batteries, such as higher energy density, longer and excellent cycle life, high strength, cost-

effectiveness, and outstanding performance even at low temperatures.

This ultra-safe battery has successfully passed penetration and crash tests without catching fire or producing flames, redefining EV safety standards and addressing self-combustion concerns.

The Blade Battery is not only used in BYD’s EVs but is also supplied to other automakers. The battery’s design

also boasts increased space utilization, achieving a 50% improvement in the cell-to-pack ratio compared to previous models.

Additionally, the new design reduces the number of components by 40%, resulting in a 30% cost reduction for the battery pack. Because of that, BYD’s Blade Battery offers a safer, more efficient, and cost-effective solution for electric vehicles.

BYD in the present era

In the global arena, BYD has managed to hold its own against established Western competitors such as Tesla, Volkswagen, and General Motors. The company’s unique selling points are its vertical integration, innovative e-platform, and proprietary battery technology. These have enabled it to compete on equal footing with its Western counterparts.

BYD’s relentless pursuit of innovation and global expansion is likely to help the company maintain its strong position in the market. The company’s commitment to sustainability and environmental responsibility has set an example for the industry, It encourages other manufacturers to adopt greener practices and invest in clean energy solutions.

In addition to its progress in the automotive sector, BYD is also making strides in other areas, such as renewable energy and energy storage, further highlighting the company’s dedication to creating a sustainable future. These advancements are expected to complement the growth of the EV industry and contribute to the global

shift toward clean energy.

Through its innovative technologies, commitment to sustainability, and global strategic expansion, BYD is set to play a pivotal role in shaping the future of transportation and clean energy.

BYD, a high-tech enterprise in China, specializes in IT, automobile, and new energy. BYD Auto is known as one of the leading global EV brands. In the field of new energy, BYD has developed green products such as solar farm, battery energy storage station, EV, and LED.

The innovations rendered by the integration of new technologies in EVs

BY TRISHA AJANETTE BALLADARES

VALIDATED BY QUEK YANG THEE OF REPUBLIC POLYTECHNIC

Constant advancements in Asia’s land transportation sector are underway with the adoption of new technologies in EVs. The utilization of Artificial Intelligence (AI) and the Internet of Things (IoT) are expected to improve the driving experience of motorists and play a vital role in the land transportation timeline of the future.

Mainly, EV market-related initiatives lean toward enhanced digital and sustainable solutions. IoT and AI may usher higher-performing electric vehicles by allowing more efficient data collection and decision-making processes.

Continued in page 41

From page 39

One of the leading companies in the manufacturing of electric cars, Tesla, Inc., has been using Artificial Intelligence of Things (AIoT) to optimize their EV supply equipment and enhance the customer experience. AIoT renders combination of AI and Iot features to progress business processes.

Tesla cars make use of software that enables autopilot and self-driving modes. In addition, the IoT-enabled overthe-air update system allows the EV to update itself, thus reducing the need to visit car dealerships for repairs and bug fixing.

With the increased number of vehicles on the road, traffic congestion is a problem in cities around the world. AIoT-integrated drones can help resolve issues like these easily.

The drones connected to the IoT network can collect and transmit traffic data which AI analyses to make accurate decisions like adjusting the speed limit and traffic lights without any human involvement.

“The EV industry will advance considerably due to the induction of Artificial Intelligence as it will make the life of riders easy and convenient. Auto manufacturers are rapidly upgrading their existing production systems by incorporating AI platforms. These companies are increasingly focusing on developing autonomous vehicles to improve passenger mobility,” said Nischal Chaudhary, founder of Batt: RE Electric Mobility, in an interview given to CircuitDigest.

Automation maximizes efficiency

IoT and AI may increase the reliability of EVs through automated processes, accessible support networks, and better user experience models.

IoT is rapidly expanding, and the unstructured data collected by IoT, can be turned into structured information

having actionable insight with the help of AI data analytics tools.

A user experience example of this is IoT sensors within the EV can collect data about relevant metrics like the tire pressure of the EV, and AI can predict when the tire pressure is low related to the owner’s typical usage pattern. Based on the analyzed data notifying drivers to inflate the tires or pay a visit to the nearest service center is possible.

Advanced user experience technology combined with machine learning algorithms, such as in a user experience workshop, provides insights into traffic patterns and road conditions. It helps drivers in avoiding any obstacles ahead. Drivers can receive commands on when to speed up or slow down.

IoT technologies allow users to access maps and other information while driving. Apart from integrated IoT in EVs, a smartphone connected to the internet can act as an in-car-GPS system.

EVs can utilize AI and IoT to locate the closest charging stations on days of rain and poor visibility. Drivers can get real-time weather updates, directions to the closest charging stations, and route suggestions to steer clear of dangerous driving zones with IoT sensors and AI algorithms.

Also, EVs can have a secure connection to charge their vehicles utilizing cloud computing and IoT technologies. These are made possible through cryptography, which ensures both the charging structure and the vehicles using it are safe from cyber-attacks.

Tracking daily energy consumption charging points also helps drivers in electric vehicle maintenance by monitoring the battery’s health and detecting any issues early on.

AI is a modern approach in dealing with issues like the low battery as AI in the EV will automatically switch to battery mode and recharge the batteries.

Improvement of battery performance

IoT and AI can improve EV battery performance by monitoring and managing energy use. This user experience technology allows EV owners to drive long distances without needing to stop multiple times to recharge during their journey.

In countries like India, most EV companies are moving towards Li-ion battery packs for their vehicles as they have a longer life and higher energy density

One of the challenges in using Li-ion batteries is the need to monitor the temperature at which the charging and discharging of these batteries occur.

Li-ion batteries are expensive, and damage to these would prove very costly. The temperatures of such batteries could be regulated easily with the use of sensors in IoT and AI-based battery management systems (BMS).

“The battery pack in an EV typically consists of numerous individual battery cells connected together in series to achieve the desired voltage. The voltage output of an EV battery pack depends on the number of cells in the series connection,” Quek Yang Tee of Republic Polytechnic shared.

He added that traction power is a power source for

hazards.

The high voltage levels in EVs can be dangerous, and close monitoring of the voltage is needed to prevent electrocution to the driver through direct or indirect contact

Battery Management System (BMS) is a technology designed to provide insight into the battery and optimize its performance.

BMS assists electric vehicle maintenance by providing insight into the battery and environmental operations and helps prevent lethal hazards.

“Batteries have redefined almost every aspect of our lives, from powering mobile devices and EVs to enabling the transformation of our electric utilities. They also serve as a cornerstone in the battle against climate change –the most crucial challenge facing our world today,” said Dr. Christina Lampe-Onnerud, Founder and Chief Technology Officer of Boston-Power, during her Sweden King’s medal acceptance speech.

Machine learning algorithms can be used to monitor the health of a battery over time by analyzing factors such as temperature and voltage. It ensures that the battery is always in the best condition, which improves performance and safety

Reduction of carbon footprint

Innovations like AI and IoT that assist in decarburizing energy sources are on-demand. Out of the 100 polluted cities in the world, 93 are in Asia.

The land transportation sector is one of the largest emitters of greenhouse gases and a significant roadblock in achieving net zero emissions in these countries. Therefore, there is a need to mitigate the impact of climate change which is affected by pollution.

AI and IoT reduce carbon footprint by analyzing vast energy-related data like traffic patterns, energy bills, and weather conditions and mapping out the most effective way to travel using the least amount of energy.

AI and IoT also make it easier to make rechargeable vehicles that do not rely on combustion. These enable scaling public transport and reducing individual vehicles on the road, thus reducing the carbon footprint.

Yamato Transport Co, Ltd. has recently partnered with Commercial Japan Partnership Technologies

Corporation (CJPT) to study the standardization and commercialization of rechargeable and replaceable cartridge batteries. Battery Electric Vehicle (BEV) makes use of these cartridge batteries.

This initiative aims to reduce the company’s carbon footprint and promote the usage of EV in Japan. The company had earlier rolled out the implementation of EVs for parcel deliveries in 2019.

Overall, as the land transportation industry in Asian countries gradually welcomes the shift to electric cars, IoT and AI solutions rapidly bolster EVs’ capabilities. These elements enhance customer experience and also usher safety on the road.

On the side, the new breed of EVs with the said tech advancements can assist in decarburizing energy sources help in EV battery management. With the growing need for sustainable and convenient modes of transportation, the EV market is projected to grow profoundly in the coming years and transform the land transportation sector in Asia. V

Digital supply chain boosts efficiency and raises risk concerns

BY NICOLE TRETWER

More businesses are now integrating digital supply chain initiatives into their operations. In Asia,

digitalization is at the forefront of ushering the shift to the dubbed “supply chain 4.0.” It is where new technologies play a crucial role in streamlining business processes. An example is the collaboration between Malaysian Airlines and GE Digital, which is a software and Internet of things (IoT) services provider. GE Digital’s Fuel Insight and Fuelpulse aviation software aid in catering to the airline’s initiatives on sustainability as well as in the modernization of its fuel efficiency program.

Although Malaysian Airlines have yet to release further data on the said cooperation, GE Digital’s past partners from the supply chain network have shown positive results. Among others, Gerdau, a steel producer, was able to get their return on investment in 8 months, almost half of the initial 18 months target.

The total savings of Gerdau reached $4.5 million in a year for an investment of $1.5 million. Gerdau also experienced a 5% lower freight cost. Also the raw material inventory became faster, from 3 days to 7 minutes.

Meanwhile, according to a survey done by the Hongkong and Shanghai Banking Corporation (HBSC) with over 400 financial decision-makers from organizations across nine markets in Asia Pacific, 76% are expecting to increase levels of supply chain digitization.

Digital supply chains are geared to be a faster and more effective alternative to traditional models. Unlike the latter, which notes production and distribution, a digital supply chain focuses on consumer needs.

With the application of the IoT, automation, and networking, digital supply chain management renders customer-centric workflows. Wherein, the focus is on responsiveness, recognition, and resilience, which are essential in logistics and supply chain management.

The use of various digital supply chain technology enables micro-segmentation and mass customization, where customers are managed in smaller segments. It allows customers to choose from multiple products that fit their particular needs.

Pros of using digital technology in supply chain

A digital supply chain usher efficiency by eliminating the need for manual processes. Tools such as cloud computing, artificial intelligence, and blockchain make planning and managing the operation of a supply chain company easier.

Notably, access to the external and internal data structures provides better visibility into the supply chain management from getting materials to product delivery. The gained visibility will help to learn more about how supply chains operate while lowering the risk involved.

“As many companies move into a recovery stage (after the pandemic) to stabilize supply chain operations and manage demand-side shocks, the opportunity to seek renewal through new, longer-term digital strategies also arises,”Anne Petterd, Head of International Commercial & Trade, Asia Pacific at Baker Mckenzie, an international law firm It lessens downtime and increases communication efficiency. In this case, making decisions becomes quicker

operational concerns

due to the reduced delivery time of updates and will result in faster operations. Furthermore, the monitoring of products in a digital supply chain industry 4.0 will be easier with better reverse flow.

The COVID -19 crisis has made the gap in traditional supply chain management in sudden situations apparent. This raised the need to analyze supply chain resilience and alternative supply chain network for crucial parts and materials.

For example Apple aims to have sustainable production. In 2021, they were forced to cut back on their production due to the global chip shortage caused by a lack of supply of parts. Apple is now breaking away from their traditional chip makers and opting to use in-house chips. Another effort that they did is to diversify production by doing production in India and Vietnam. In the past, Apple have relied only in China. Through diversification and usage of in-house chip parts, they can address concerns related to supply in the future.

Post-pandemic conditions have forced companies to choose between “just-in-time” (JIT) and “just-in-case” (JIC)

inventory management and manufacturing models. Both ushers supply chain agility that aid in their ability to adapt to changing market conditions.

The JIT model enables companies to prevent going beyond usual production. It reduces wastage and production costs.

“The pandemic made it apparent that supply chain managers can no longer simply focus on striking a balance between cost and performance. Instead, additional elements such as agility, resilience or sustainability need to be considered,”Dr. Matthias Hodel, SVP, Global Head Customer Development Integrated Logistics at Kuehne+Nagel noted.

He added that digital technologies enable JIT models to meet these new requirements. Such a supply chain will not only be cost-efficient but also more agile and more resilient.

Meanwhile, the JIC model protects organizations from unexpected supply delays. It also shields against more demand, or dealing with a spike in the cost of materials. Organizations can improve their operations to adapt through data-driven technologies in supply chain management. These are machine learning and predictive analytics.

Overall, digitalization can augment JIC and JIT models when they are used in supply chain management. As per the report by IoT analytics, market insights, and business intelligence provider, the digital supply chain is expected to grow at 8.1% ever year from 2022 to 2027.

Cons in Supply Chain 4.0

Apart from the benefits, a supply chain digital transformation has a fair share of downfalls. To properly address such concerns, there is a need to raise awareness on prevention and mitigation.

Cyber security risk is high when doing digital solutions. Often, software and hardware may become the target of cyber attackers, which causes supply chain problems. Digitalization makes the supply chain transparent for all

the parties involved, which, when hacked, will hamper workflow.

Digital business insurance company Embroker coined a list of the top cyber security threats in 2022. These are social engineering, leading people into getting access; third-party exposure, breach from third parties; and configuration mistakes, errors that can be hacked.

Ransomware is also a threat to watch out for. It includes malware that blocks access to the system or important files. The hackers ask for a ransom in exchange for giving back access. Kaspersky Security Network has found 804,513 cases in Southeast Asia on 2020. Although, the cases is 58% lesser than in 2019, it is still high.

Software updating can help protect computers from cyberattacks by fixing bugs and improving fuctionalities. However, an outdated information within digital supply networks can make it difficult for the IT team as they can miss important dates for software updating.

As a result, they may face license infringement because they don’t meet agreement terms, use rights, and risk aversion measures of the old and current contracts. With infringement, there is a potential huge pitfall in business confidence from the customer.

Meanwhile, concerns on whether high investment cost can justify the financial returns, arises. Based on the paper “ Digital Supply Chains: A Frontside Flip,” of The Center for Global Enterprise, it was found that companies that did digitizing saw a 50 % reduction in supply chain cost.

However, using digital technologies can alter financial gains. Digital supply chain management depends heavily on technology, and the operation costs are high. Some businesses may consider it an opportunity to improve their profit as they finds it hard to substantiate the hefty investment that may take

time to have a return on investment.

Another problem to note is that any disruptions in power or downtime in network access could mean that the data will remain inaccessible by any other means. The complexity and fast-paced advancement of technology in supply chain also make maintenance challenging. This, in turn, leads to the demand on skilled workers that are difficult to hire and comes at a higher cost.

Training employees on new technologies and systems is time-consuming and costly. There is a possibility of high employee turnover due to a lack of opportunities for career development. Failure to create a solid workforce can disrupt the supply chain and logistics.

Adoption of digital supply chain

Due to the rapidly growing demands of customers, the shift from traditional to digital supply chain management in Asia is becoming apparent. Prioritizing the customer service experience makes digitalizing the supply chain for services highly-dynamic.

The benefits of using digital supply chain management strategy planning and operation include the streamlining of processes. With the aid of technologies, it renders real-time updating and transparency. On the other hand, the primary counterpart is the dependency on digital technologies, which are costly.

Adopting supply chain digitalization can help businesses manage the flow of their goods and services while meeting customer demands. Digitalization will boost operations in an agile, efficient, and transparent manner if they learn to deal with plausible downfalls systematically.

THE CONTRIBUTING AUTHOR Nicole Tretwer

Nicole Twetner is a result-driven and solutionsoriented leader with a University of Manchester MBA. She has over 20 years of experience in a broad range of roles in business management. She’s interested in digitizing supply chains, finding out the latest in tech, and how to apply it in a real-life business environment.

SOOORYA renders new uptake on EVs for the ridesharing sector

BY CHARLENE JOANINO

The ridesharing sector may yet receive a nudge from SOOORYA’s presence, but the company’s purpose-built electric vehicle (EV) for ridesharing is one that is worthy of attention. Said modular platform-based EV makes low capital expenditures (capex) possible. Its because the transportation

vehicle could be assembled locally and fitted with off-the-shelf parts for a specific market.

The Singapore-based company has set its sights on sustainable operations with distributed micro-factories instead of one large assembly-line factory. This will lessen the cost and shipping time of EVs that needs to reach specific countries.

He added that the SOOORYA EV was specifically designed for ridesharing. Wherein, Fernandez noticed that people are willing to pay a premium for comfort during commune. The company lean toward its deployment in the Indian subcontinent, the ASEAN region, African continent, and South America.

A versatile business model

SOOORYA has built its business model not on the basis of subsidies but rather with an emphasis on boosting the income of the driver or owner and ridesharing companies.

At the same time, they aim to reduce the cost of an everyday commute without compromising comfort by splitting the fares between the passengers.

It paved the way for the creation of an 8-seater electric ridesharing car that SOOORYA deems as “utilitarian, tech-enabled, and multi-purpose.” The EV has a modular design that can be localized for emerging and developing markets.

SOOORYA is opting to forge tie-ups with specialist manufacturers in outsourcing EV body parts. In this case, the manufacturing of the said parts will be tailored to the company’s specifications.

“Our challenge was in developing technology that was most suitable for the fleet segment, so we leveraged on the expertise of suppliers. We knew what we wanted, but we had to wait for the supplier ecosystem to develop, because we did not want to spend on our own Research and Development (R&D) or manufacturing,” Fernandez shared.

The company will do the vehicle integration and the end assembly in owned as well as franchised micro-factories. Their team of experts would oversee and implement their initiatives in all aspects of supply chain management, manufacturing, and distribution. Hence, EV production will be a collaborative effort between SOOORYA and contract manufacturers.

“There are a lot of unused manufacturing capacities available in the market, so it’s relatively easier to make contract manufacturing in different geographies, said Christie Fernandez, the CEO, and founder of SOOORYA.

E-mobility for ridesharing and ridehailing

According to Fernandez, about 85% to 90% of the passenger car market is the personal car segment. Meanwhile, the fleet segment is just 10% to 15%. Large automakers are generally don’t focus on it, which led SOOORYA to address the gap with a purpose-built taxi for ridesharing.

Statista, a market and consumer data provider, shared that in 2021, Southeast Asia’s online ride-hailing and food delivery alone is already worth US $13 billion. By 2025, it may grow to as high as US $42 billion.

Some of the leading ride-hailing companies in the industry are Grab, Gojek, Ola, Didi, and Uber. Passengers often prefer these service providers as they are less expensive.

Therefore, SOOORYA focuses on the fleet segment. Its initial EV model is a taxi for short-distance ridesharing. The EV’s top speed is 60 kmph, which is ideal for last-mile or first-mile mass transportation. In turn, the vehicle thrives on point-to-point stops within the public utility vehicle (PUV) sphere.

In this sense, the EV fits the needs of everyday commuters and is also viable for employee transport or

ride-hailing. Unlike the usual PUV, SOOORYA EV provides comfort, comprising individual seating with seat sensors and ample air conditioning.

USB charging, a panic button, and UV light sterilization are also among the vehicle’s features. Also, as an EV, it has a minimal carbon footprint, so it’ll contribute to reducing air pollution and CO2 emissions.

SOOORYA EV has ample seats for passengers so that commuters can have a premium experience at an affordable cost. It aligns with SOOORYA’s commitment to providing an “Affordable, Comfortable, and Eco-friendly (ACE)” transportation vehicle.

Meanwhile, operators of the SOOORYA EV taxi get to enjoy certain perks. They can take advantage of the ‘plug & ply’ technologies which is a built-in device for applications. They can access GPS and have the ability to connect to Wi-Fi, which is handy in efficiently planning or traversing routes.

Mass transportation innovations

A noteworthy characteristic of the SOOORYA EV is the portability of its batteries. Unlike the usual EVs that require a lot of time for charging, SOOORYA’s transportation vehicle has a unique vehicle architecture of “fixed + swappable batteries,” providing multiple charging options.

SOOORYA’s 8-seater EV is the first modular EV concept in Asia that is geared towards the ridesharing sector. Said EV has a max speed of 60kmph and is powered by a less than 25 KW electric motor. (Image by SOOORYA)

Fernandez emphasized.

He noted that the SOOORYA EV would solve the problem of charging downtime so operators and ridesharing companies can avoid losing money due to the time lost. Not to mention, although there’s the apparent progress in the Asian EV industry, charging infrastructures are still sparse on the continent.

In terms of range, the EV can cover up to around 200 km, with its less than 25 KW electric motor. The battery-

swapping technology, along with multiple-charging options, would enable ridesharing operators to have no range anxiety or charging downtime.

Another energy source for the said car is its solar roof. It will provide additional mileage at no cost. Hence, ensuring the “lowest cost per kilometer per seat” during ridesharing.

Matching the right product to the right market

SOOORYA has been keen on understanding the potential markets for their EV venture. Years of research serve as the company’s foundation for achieving the best Product Market Fit (PMF).

As such, Fernandez emphasized the importance of deploying suitable transportation vehicles that fit a certain market. One example he shared was the case of American brands Ford and GM that were unsuccessful in India, while certain brands made by the Japanese, Koreans, and Indians were more successful. However, none of the brands focus on the fleet segment.

As a result, SOOORYA’s vision is amicable for some industry stakeholders. In fact, the company received inquiries for the production of about 20,000 units. These interests came from the Indian subcontinent, ASEAN countries, Africa, South America, Europe, America, and other parts of the Middle East.

With the finalization of SOOORYA’s vehicle architecture, the EV production phase can be completed within 12 to 18 months. Considering that the SOOORYA EV is the first taxi for ridesharing, it might be what investors, ride-hailing operators, and ridesharing passengers are waiting for.

ABOUT

SOOORYA, an eMobility startup incorporated in Singapore, is on a mission to provide “Affordable, Comfortable & Eco-friendly Mobility” in the developing world. SOOORYA is producing an Electric Taxi, specifically for the ridesharing segment in select emerging markets in Asia.

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In the fleet segment, uptime is very important. Fix the downtime, and you increase the profitability of your business

“We focus on the developing countries, most of them in the southern hemisphere, where solar is abundant,”

Fernandez noted in regard to solar roof integration.

Christie Fernandez CEO and Founder of SOOORYA

On EV industry race: Who will dominate the Southeast Asian market?

BY TRISHA AJANETTE BALLADARES

The Southeast Asian market is revving for a promising future in its electric vehicle (EV) industry, and select countries in the region are joining the hype. It was perpetuated by the global push towards sustainable consumption that led to the advent of eco-friendly cars.

This trend is gaining attention as the market aims to resonate with its more environmentally-conscious consumers. Such was part of the effort to mitigate climate change.

Notably, Southeast Asian countries are taking bolder steps towards their obligations under the Paris Climate Accords. They are lessening their dependence on fossil fuels and incentivizing the use of EVs.

Said efforts lean towards the grand vision of making the region a global EV hub. Governments as well as other involved stakeholders, now usher efforts on promotion, deployment, and adoption efforts.

Ramp-up adoption of EVs

With the goal of having EVs in the transportation sector, select Southeast Asian nations have launched a range of EV-related efforts. Such renders the takeoff of the EV industry and usher people to take part in the green mobility goal.

By 2040, Singapore (SG) plans to phase out internal combustion engine vehicles. Despite the potential challenges that remain in the way of the adoption of eco-friendly cars, SG remains steadfast in its deployment strategy.

SG’s Land Transportation Authority (LTA) revealed late last year its bold vision. They will roll out a network of over 12,000 EV charging stations across 2,000 Housing and Development Board (HDB) car parks by 2025. Such aligns with SG’s goal of turning every HDB town into EV-ready.

On the side, Southeast Asia’s largest economy, Indonesia, is taking strides to strengthen its domestic EV manufacturing industry. The Indonesian government has a subsidy program for electric car sales to support this effort.

The program, first announced by Indonesia’s Minister of Industry, Agus Gumiwang, in late 2022, aims to provide a $5,000 subsidy to electric car consumers.

Indonesia also seeks to utilize its nickel reserves. They aim to develop an EV manufacturing base and make itself a dominant EV player in Southeast Asia.

Jakarta, Indonesia’s capital, has secured $15 billion worth of investments from global automotive manufacturers in just three years. It was part of the government’s plan to achieve a net-zero emissions target by 2060.

Meanwhile, the Thailand government, in 2022, introduced a 40% and 20% reduction in tax for completely built-up (CBU) battery EVs bought overseas.

EVs costing $61,805 has a 40% tax reduction. Also, those priced between $61,805 and $211,278 enjoy a 20% reduction in import duty.

Excise tax cuts of 2% to 8% for imported EVs were introduced. These cuts are expected to increase the number of EVs on Thai roads by as much as 7,000.

The battle for the best electric cars has intensified in Thailand. Both Japan and China are vying for dominance in the said industry.

Toyota and other Japanese car manufacturers have invested heavily in Thailand. Meanwhile, China has positioned itself as Japan’s new rival.

Chinese automakers are setting their sights on Bangkok, betting big on its market potential. In March 2023, Chinabased BYD and NETA inked deals to construct EV plants in Thailand. The Chinese carmakers aim to capitalize on Thailand’s established supply chain to bypass U.S. trade restrictions.

As for the Philippines, Republic Act 11697, or the “Electric Vehicle Industry Development Act,” lapsed into law in April of 2022. Aside from tax exemption, EV owners are a priority during registration or renewal in the Land Transportation Office (LTO).

The LTO also gives a special type of car plate. The Metropolitan Manila Development Authority, other similar entities, and local government arms have also specifically exempted EVs from their traffic reduction efforts.

EV giants and start-ups raise the bar

With Southeast Asian capitals leading the way towards the adoption of eco-friendly cars, global automakers are pouring in investments to the region. The EV industry has

a market size of about $500 million in 2021 and may be worth $2.7 billion by 2027.

Japanese brands such as Toyota, Honda, Mitsubishi, Daihatsu, and Mazda are facing stiff competition. They are being rivaled by industry newcomers from China and South Korea as well as local Southeast Asian firms.

Non-Japanese electric car brands have aggressive strategies to expand their operations in Southeast Asia. It threatens Toyota’s position as the world’s top automaker in terms of sales volume in 2022.

While SUVs and sedans continue to be Toyota’s bread and butter in the region, Chinese and Korean manufacturers are banking on EVs to break into the Southeast Asia market and appeal to the socioeconomically diverse Southeast Asia population.

Heo Junheang, Hyundai’s Vice President of Sales Group Asia Pacific Headquarters, shared their optimism about the region’s potential for EV investment. He shared this during a conversation with the Association of Southeast Asian Nations (ASEAN) Secretariat.

Southeast Asia’s uphill route

Like any other industry, certain challenges face EV supply chain stakeholders in the Southeast Asian market. A major barrier to EV uptake is the lack of a public charging infrastructure network.

In the absence of the said infrastructures, there is severe limit on the driving range of EVs. Such will discourage buyers in favor of conventional vehicles.

For environmentally-conscious consumers, EVs may not also be as eco-friendly as they deem them to be. As per the ASEAN Energy Report in 2022, coal and gas comprise the most shares of power capacity in the region.

ASEAN member states made a commitment towards the use of clean energy. However, the promise of being eco-friendly in a fossil fuel-dominated energy landscape may not satisfy ethical buyers who seek other sustainable alternatives.

“Hyundai envisions ASEAN to continue to follow the growth of vehicle technology. Electric vehicles are beginning to be produced, and we aim to be a solution to air pollution and fossil fuel shortages in the ASEAN region and worldwide,” Heo declared. V

Nonetheless, the Southeast Asian market for ecofriendly cars is exponentially progressing. Despite challenges and consumer doubts, there is increasing optimism about the region’s potential as a global EV hub and its pivotal role in shaping a sustainable future. Whether which nation will lead the industry is a question that has yet to come to a conclusion.

Asia faces EV mass challengesadoption

BY CHARLENE JOANINO

Battery supply and its parts

The battery is the most costly part of the EV supply chain modeling structure. It accounts for around 40% of an EV’s entire price.

Since lithium-ion batteries are light, compact, and have a large energy capacity, EVs mostly have them. Lithium, nickel, and cobalt are crucial raw elements for producing these batteries.

According to the annual Global Electric Vehicle Outlook of the International Energy Agency (IEA), lithium prices were roughly seven times higher in May 2022 than in 2021.

Currently, China manufactures 75% of all lithiumion batteries. The country has an 85% manufacturing capacity for anodes and 70% capacity for cathodes. Both of which are crucial parts of batteries.

Nickel and cobalt prices also becomes higher. If these costs remain at their present levels, the cost of battery packs might rise by 15%. Meanwhile, since Russia produces 20% of the world’s nickel for battery use, the Russia-Ukraine’s war has put pressure on the EV supply chain drive.

More than half of the world’s capacity for processing not just lithium, cobalt, and graphite, is in China. However, due to supply chain distribution delays in China, the price increases for several vital minerals required for battery production.

Such situation was due to Covid-19 in China. It also led to higher EV costs than traditional internal combustion engine vehicles, which may hinder many EV distributors.

To become resilient, EV producers must develop innovative supply security and sustainable management techniques. These include vertical integration, strategic partnerships, local supply bases, and battery chemistry innovation.

“Policymakers, industry executives, and investors need to be highly vigilant and resourceful to reduce the risks of supply disruptions and ensure sustainable supplies of critical minerals

said Fatih Birol, Executive Director at the International Energy Agency.

Shifting from gasoline-powered vehicles may seem far-flung before in Asia, but the rollout of electric vehicles (EVs) has now become a significant supply chain drive in the continent.

Based on the Global Electric Vehicle Outlook of the International Energy Agency (IEA), about 16.5 million electric cars are in roads across the world. Such is the case in 2021 and it has tripled compared to 2018. Half of the said number is from China.

Standardized EV charging

The EV market’s biggest challenge is the need for more standardized charging systems to usher mass EV supply chain drive across Asia. Given that an EV relies on electricity, this takes a toll on its marketing.

“The standard system of electric vehicles and charging systems in the world is diverse and continues to be developed. Each country, based on its conditions, chooses and builds an appropriate system of standards,”said Pham Tuan Anh, deputy director of the Department of Industry at the Ministry of Industry and Trade (MoIT), Vietnam.

As a growing industry, the worldwide market for EV charging may reach a value of around USD 190 billion. Such is nearly one-tenth of the market for diesel and gasoline today.

At present, public charging stations may not be enough to support the scale of the EV supply chain distribution. Infrastructure efficiency and the nature of deployment depend on regional specifics.

Some supply chain studies show that the construction of EV charging infrastructure in Asia has increased in recent years as more countries look to promote sustainable transportation. For example, China has already made notable progress.

Although most mature auto markets experienced double-dips in sales in 2021-2022. EV sales still outperformed by 21% in Europe, 87% in China, 55% in Northern America, and 78% in non-triad economies.

The adoption of EVs is a crucial supply chain drive in Asia. It was being encouraged by both the government and private sectors. Despite this, the EV supply chain has to face significant challenges as a budding industry.

South Korea also has a number of public charging stations at 106,701 where 15,067 are capable of doing rapid charge. Private companies such as Hyundai and Kia have invested in EV charging network development to support the EV supply chain drive in Asia.

However, EV charging infrastructure still faces some major challenges for supply chain models in Asia. First, the production costs of the said infrastructure can be expensive. Therefore, private companies and governments may only be willing to invest once there is a larger market for EVs.

Second, stations where EV owners can charge also need a construction place. Such may be difficult, particularly in urban areas where there may be limited space and complex regulations.

In order to ensure the success of EV supply chain simulations and that every community would be covered in the transition, there should be a continuous provision of

“China had more than 1.1 million publicly accessible electric vehicle chargers in 2021, accounting for over 65 percent of such chargers worldwide, shared Mathilde Carlier, Research Expert from Statista, an international database company.

government support. Regardless if it’s through legislation relating to the construction of charging stations or by subsidy.

Governments should continue to promote the implementation of publicly accessible charging infrastructure. Also, enough charging infrastructures across Asia should be erected.

Diving deeper into adoption and promotion

The EV supply chain drive will take a while, but it can’t be denied that recent progress is paving the way for the EV supply chain distribution’s promising growth in Asia. Despite the challenges, governments and private companies in Asia are doing EV-related efforts. In which, the aim is to develop new technologies, improve EV supply chain management, and build out charging networks.

The mass adoption of EVs has significant implications globally and in Asia. It addresses the global challenge of climate change by reducing greenhouse gas emissions and improving air quality.

Additionally, EVs support energy security by lessening oil demand. It also creates new jobs that could boost the economy and support local communities. Hence, EV supply chain stakeholders need to work together to address the challenges of EV adoption.

EV adoption scale up demand for skilled workers and professionals

BY ALGIN MICHAEL SABAC

Careers related to electric vehicles (EVs) have either emerged or become in demand due to the presence of EVs in the Asian market and different parts of the world. It paved the way for the need for professionals, from electricians and automotive technicians to other related occupations.

Developing a specialized workforce is crucial in

the development and maintenance of EVs. There is also a need for experts who can manage the logistics services and delivery of the vehicles.

From handling raw materials to delivering finished products, EV supply chain management requires a unique set of skills to ensure sustainable operations. Hence, EV innovations in Asia present a future for certain job seekers.

Efforts in the logistics sector

Select logistics companies have been transitioning from using gas-powered cars to EVs as they lean towards environmental-friendly operations. In turn, there is potential for a boost in the demand for logistics jobs that are relevant to the EV industry.

Logistics services is a key factor in the said industry’s growth. Logistics companies like UPS and FedEx started to adopt EVs for logistics transportation.

FedEx has set a goal to convert its entire parcel pickup and delivery fleet to zero-emission EVs by 2040. The company aims to have 50% of its global vehicles become electric by 2025 and 100% by 2030.

In line with this commitment, FedEx made efforts to advance its sustainability goals in Asia. It was deploying EVs in India for zero-emissions last-mile delivery. This move supports FedEx’s mission to reduce its carbon dioxide production in the region.

said Julian Neo, the Managing Director of DHL Express Malaysia and Brunei.

The roster of opportunities

Aside from logistics jobs, there is a wide range of careers that covers electric vehicles. According to the United States Bureau of Labor Statistics, there is a high demand for skilled technicians, electricians, and engineers in the EV industry. Particularly those with experience in battery technology and electrification are needed.

The International Energy Agency (IEA) noted that the growth of the EV market is an example of how the energy shift presents significant job demands. They deemed that it is important to invest in training and education. Doing so will result in a workforce that can meet the demands of this rapidly growing industry.

UPS commits to having carbon neutrality by 2050. The company has EVs in Asia, Europe, and North America. According to the company, using EVs in China may reduce over 4,000 metric tons of carbon dioxide per year. It is equal to taking nearly 900 traditional cars off the road.

Additionally, the IEA foresees a 30% global share of vehicle sales by 2030. Therefore, there will be more jobs for electricians, as the market value of EV charging could increase over 20 times by 2030.

The EV industry is also attracting investment and innovation, with new startups and established players. They are investing in the development of new technologies and products. Such presents exciting opportunities for professionals in the industry to be at the forefront of innovation and the shift to a more sustainable future.

Investment in the trend toward Automation, Connectivity, Electrification, and Smart Mobility (ACES) has seen growth over the past decade. McKinsey & Company noted that nearly $330 billion is being poured into over 2,000 mobility companies focused on the said area.

The shipping industry is also a key player in the supply chain of EVs. Companies like DHL and Amazon are investing in EVs to reduce their carbon footprint.

Amazon has taken a significant step towards 100% renewable energy usage by 2025. The company made an order of 100,000 EVs from Rivian.

DHL Group has committed $8 billion over the next ten years and aims to have over 80,000 EVs on the road by 2030. The group is collaborating with Daimler Trucks North America and Penske to achieve this goal.

As a part of such effort, DHL Express, a subsidiary of DHL Group, has set a goal to have over 1,000 EVs in the Asia Pacific region by 2024. Wherein this investment in EVs will enhance the company’s capabilities in EV logistics and further its sustainability goals.

Therefore, industry analysts deem that the rise of EVs is not just limited to the auto industry but is expected to have a widespread impact on other sectors. It will create new careers and business opportunities across the entire value chain.

Jumpstarting careers that are relevant to handling EVs

With the gradual increase in the demand for EVs, now is the time to consider a career in the EV industry or any related logistics jobs. To enter the exciting world of EVs, obtaining certification as a Tesla certified electrician can be a valuable step.

Likewise, taking other relevant certifications will also help aspirants who want to pursue a career in the industry understand EV technologies and trends. Some fields of study are electrical engineering, battery technology, and sustainable energy.

“FedEx’s sustainability goals drive us towards a greener future

said Suvendu Choudhury of FedEx Express India Operations.

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“ As a leader in green logistics solutions in Asia Pacific, UPS is committed to making a meaningful impact,

At DHL Express, our investments are always geared towards reducing our carbon footprint. The advancements in electric vehicle technology play a crucial role in achieving our goal of reaching netzero emissions by 2050

said Monrudee Theeraworawit, director of China marketing at UPS.

Reaching out to an automotive industrial electrical contractor is a must-consider. Doing so will aid in gathering information on certification processes and EV training opportunities.

Meanwhile, the National Renewable Energy Laboratory (NREL) and Federal Energy Management Program (FEMP) Fleet created the EV Champion Training Series. Said four-part course program provides a comprehensive understanding of the EV industry.

On the side, in Asia, governments and industry players are taking steps to ensure that the region is well-equipped with a skilled workforce to meet the demand for EVs.

For example, the Land Transport Authority in Singapore started initiatives to upskill and certify professionals in the EV industry in 2022. Wherein they focus on the local EV industry and building a skilled workforce that can contribute to the development of sustainable transportation systems.

Singapore’s Land Transport Authority (LTA) has formed a partnerships with 22 organizations. It includes automotive industry partners, vehicle fleet owners, training providers, and other government agencies.

Additionally, private organizations and educational institutions are also offering EV training and development programs for workers in the EV industry. DIYguru, a

training platform, aimed at expanding its EV workforce training program across Southeast Asia. Therefore, DIYguru is working with a Malaysian joint venture company.

The said program provides EV training for individuals interested in having careers in the EV industry. It also aims to address the need for skilled workers in the region.

Another noteworthy platform is the GreenLancer which offers resources and EV training for professionals. GreenLancer provides a comprehensive guide to careers related to electric vehicles. It also covers important topics. These comprise of the impact of EVs on the environment and the growing demand for sustainable energy solutions.

Tata Motors has been investing in the EV training of its electronic and electrical workforce. Thus, they partnered with Graphic Era Hill University to upskill their workforce and cultivate in-demand technical expertise.

Overall, the importance of EV training and development opportunities is a must. Professionals must take advantage of the opportunities to upskill that are available to them in order to fit into careers in the EV sector. With the right combination of education, experience, and passion, anyone can start a fulfilling career or be involved in any related jobs in the rapidly growing world of EVs.

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