SINGAPORE: Grab has announced plans to expand its electric vehicle (EV) fleet with 50,000 BYD vehicles across Southeast Asia, signalling its intention to lead the region’s shift to greener transportation.
“Through this partnership, Grab and BYD look to boost the electrification of the transportation sector in Southeast Asia,” the Singapore-based firm said on Wednesday (Jan 15).
However, challenges remain in the region. Countries like Indonesia, Thailand and Vietnam trail behind Singapore and Malaysia in their EV infrastructure development, said one transport analyst.
Other analysts also questioned whether Singapore’s charging infrastructure is adequately prepared for the widespread adoption of EVs by ride-hailing platforms.
Grab said the collaboration with the Chinese EV manufacturer will give its drivers access to BYD vehicles at competitive rates and extended battery warranties.
Grab, which operates in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, told CNA it is not providing details on how the 50,000 EVs will be distributed among the eight Southeast countries.
Associate Professor Raymond Ong, a transport analyst from the National University of Singapore (NUS), said Singapore’s EV push likely makes it a lower priority for vehicle allocation compared to larger markets.
“If I look at sheer market size, I don’t think Singapore will be a significant majority (of where the 50,000 cars will be allocated), because the market in Malaysia and Indonesia is quite huge for Grab,” he said.
“Grab will be spreading (the 50,000 EVs) to the entire Southeast Asian market, especially for markets that are growing, as there will be more impetus to purchase EVs over there.”
Grab’s managing director of group business development Chuck Kim highlighted the partnership’s potential to overcome financial barriers to EV ownership.
This will be done by lowering the “financial barriers” that are often associated with EVs, and in the long run, this could include fuel cost savings, he said.
