Climate changes push manufacturers, governments, and individuals to transform into the new reality. When it comes to electric cars, Hong Kong and other Far Eastern countries continue to evolve to make EVs a standard way of transportation.
Electric cars: Hong Kong’s government support
Regarding electric cars, Hong Kong may be one of the biggest supporters worldwide. The government aims to limit emissions in the country by 2050, similar to the EU’s Green Deal. How could this happen? The government won’t register new petrol and hybrid vehicles after 2035.
As a result, Far Eastern companies such as Geely (HKG: 0175) or BYD (HKG: 1211) have increased their sales in Hong Kong. The EV market substantially rises—in April 2024, more than 90 percent of vehicles registered by individuals were electric cars. Hong Kong and its citizens support this change in transportation, looking for more convenient and less environmentally harmful solutions.
Hong Kong has become more pro-China than in the past. The relationship between both countries is even tighter regarding the electric cars market, in which China aims to outpace other countries.
Are electric cars worth it?
Users of electric cars in Hong Kong point out several aspects of the new EV reality in this city-state:
- The government’s pressure: Even though the Hong Kong government provides benefits for new electric car owners, the deadline for registering petrol and hybrid vehicles can be demanding for citizens.
- Cheaper than petrol: The electricity required to transport the same number of kilometers is way cheaper than petrol. Users suggest that it can be about a third less.
- Not enough charges: Drivers suggest there are insufficient chargers for electric cars in Hong Kong. Even if this number constantly increases, overtaking the rising number of EVs in the city-state is tough.
- Longer charging: While fueling a petrol car – with the payment process – takes up to ten minutes, electric cars require up to one hour. Users can charge them at home, but it still leads to…
- Changes of habits:… adapting to a new reality. Drivers aim to charge their EVs in shopping malls during lunchtime or meetings rather than jump into the petrol station while returning home from work.
Electric cars can be worth it for some, but in the following decades, they will become the new reality for almost everyone.
American impact on the EV market
Almost every rapidly developing technological business has strong connections with the United States. In the Far-Eastern EV case, the U.S. influence is visible in multiple aspects:
- The competition: While Chinese manufacturers develop their electric cars in Hong Kong and other Far Eastern countries, the United States also has multiple manufacturers, with Tesla (TSLA.US) and Lucid Group (LCID.US).
- Trade wars: With the upcoming start of Donald Trump’s second presidency, everyone understands the amount of various tariffs on the horizon. China, as usual in terms of trade with the United States, is likely to have its payments for exporting products increased. EVs will surely not be an exception.
Electric cars and other markets
Every grand project requires a substantial amount of money, and the rapid development of electric cars in Hong Kong is no exception.
That’s why the banking sector intertwines with the EV market. Hang Seng Bank (HKG: 0011) works for both individuals and businesses eager to transform their cars into electric ones. Strong government pressure also pushes the market to robust growth.
This means that electric cars’ importance constantly grows and becomes an important factor in shaping national economies. Due to the strong impact of the American EV market worldwide, traders have to look at the relationship between Far Eastern currencies and the U.S. Dollar. USDHKD and USDKRW might fluctuate with changes in the EV market.
