Driving Sustainability in APAC: Insights from the Fleet APAC Summit

Navigating the complex Thai market

Thailand's automotive market is incredibly diverse, characterized by a unique mix of geography, consumer preferences, and competitive forces. Traditionally, Japanese brands like Toyota and Honda have dominated, but we're now seeing a significant shift with the rise of Chinese brands such as MG and BYD. These new players are reshaping the competitive landscape, driving changes in fleet dynamics and consumer preferences.

At Ayvens, we are closely monitoring these shifts to ensure that we can provide our clients with the most relevant and effective solutions. The market's complexity demands a nuanced approach, and we are committed to leveraging our expertise to navigate this evolving environment successfully.

Bold shifts in vehicle preferences

One of the most striking changes in the Thai market is the growing preference for hybrid electric vehicles (HEVs) and electric vehicles (EVs). Historically, the market favored petrol and diesel models, particularly for their long driving ranges and unlimited kilometer lease contracts. However, the landscape is shifting rapidly. In 2023, EV registrations surged by an impressive sevenfold compared to the previous year, driven by a combination of government subsidies, cost parity between EVs and traditional vehicles, and the expansion of charging infrastructure.

Electrification in Thailand is no longer just a trend; it has become a reality. At Ayvens, we are fully committed to supporting this transition by providing comprehensive solutions that facilitate the adoption of EVs, both for individual consumers and corporate fleets.

Electrification in Thailand is no longer just a trend; it's a reality. The rapid adoption of EVs, supported by government incentives and expanding infrastructure, marks an important moment for the fleet industry - and one that we cannot overlook.

The rise of charging infrastructure

The rapid adoption of EVs is paralleled by significant growth in charging infrastructure, especially in urban areas like Bangkok. Public charge points have increased dramatically, making EV ownership more convenient. However, there remains a critical gap in the availability of home and workplace charging facilities. Addressing this gap is crucial for the widespread adoption of EVs.

At Ayvens, we see this challenge as an opportunity to lead in providing innovative solutions that enhance the convenience and feasibility of EV ownership. We are actively exploring ways to support the development of home and workplace charging options, which are essential for integrating EVs into corporate fleets and daily life.

Sustainability and innovation in fleet management

The Fleet APAC Summit underscored the significant role that corporate fleets can play in driving sustainability. By making thoughtful vehicle choices and aligning internal policies, companies can reduce CO2 emissions and enhance operational efficiency. At Ayvens, we advocate for a holistic view of fleet management, where vehicles are seen as integral tools within the value chain, contributing to both business success and environmental sustainability.

Our approach involves helping clients make small but impactful changes in their fleet management practices. This includes selecting the right vehicles and optimizing their use to support sustainability goals without increasing costs or inconveniencing drivers. We believe that these practical, usage-based decisions are key to creating a more sustainable future.

Small changes in vehicle selection and fleet management can have a big impact on sustainability. By aligning internal policies and focusing on practical, usage-based decisions, companies can lead the way in creating a more sustainable future.

Sustainability and vehicles funding in APAC

At the summit, our team, including Suvajit Karmakar, Country Managing Director Ayvens India and Asia sub-region Director, Venkatesh Krishnamurty, Commercial Director of Ayvens India, and Paul Turner, Country Managing Director of our entity in Malaysia, presented a detailed analysis of various vehicle funding options. We compared Full-Service Leasing (FSL) with other common practices in Asia, such as finance leasing, purchasing, or cash allowances. FSL offers significant advantages in terms of cost, efficiency, and sustainability, making it an increasingly attractive option for corporate fleets.

We highlighted the benefits of FSL, including reduced operational costs and enhanced flexibility. This approach is crucial for supporting the sustainable growth of corporate fleets across the APAC region. Our data-driven consultancy and reporting services further enhance our clients' ability to manage their fleet mileage and emissions effectively, supporting their sustainability initiatives across eight APAC markets.