In 2023, Laos saw a notable surge in the sales of electric vehicles (EVs), with a total of 4,631 EVs sold, comprising 2,592 automobiles and 2,039 motorbikes. Leveraging its huge potential for electricity generation from renewable energy, Laos’ government has been proactively facilitating EV adoption by both loosening regulations and improving infrastructure.
In 2022, Laos removed the import limit for EVs, as long as EVs met international quality, safety, maintenance, and waste management standards. EVs are also subjected to a 30 percent reduction in the annual road tax compared to their petrol counterparts with equivalent engine power. EVs are also gifted priority parking at charging stations and other public parking areas.
About the battery management, EV batteries must be replaced every seven to ten years for small vehicles, and three to four years for larger EVs such as buses or vans.
The country has also ramped up building infrastructure with 41 charging stations nationwide by the end of 2023.
However, the number of charging stations is far behind its neighbors, such as Thailand with 2,222 charging locations and Vietnam with 150,000 charging ports, not mentioning that the majority being in Vientiane Capital.
In the context of fuel shortage and increases in fuel prices, as well as the overdependence on imported fuel, which accounts for 20%of Laos’ total import value and account for about 45% of external public debt in 2022, the Lao government has been strongly encouraged the adoption of EV.
In November 2023, Vietnam-based taxi company, Green and Smart Mobiliy JSC, officially launched its electric taxi service in Laos under the brand Xanh SM with 150 Vinfast electric cars.
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