How incentives are powering electric vehicle growth

With more countries competing for EV investment, Ignatiadis cautions that offering excessive incentives carries the risk of overexpansion.

“If incentives are introduced too rapidly or at too large a scale, it can lead to market saturation and labor shortages,” says Ignatiadis. “This will strain local resources, potentially driving up labor costs and hindering growth.”

Manufacturers also face the risk of future incentive reductions or removals if market conditions change, which could negatively impact both EV sales and manufacturing.

“In a challenging economic environment, broader cost considerations often take precedence over specific incentives, which will influence consumer choices and manufacturer strategies,” says Peter Guevarra, Director, Research Consultancy, Asia Pacific, JLL.