Automotive Dialogue

The APEC Automotive Dialogue (AD) is a forum where APEC officials and senior auto industry representatives work together to map out strategies for increasing the integration and development of the automotive sector within the region. The AD aims to become the leading regional fora on new vehicle technology in the Asia-Pacific. To do so the AD:

• Holds discussions on trade and policy issues and make recommendations for policymakers (trade, transport, energy)
• Develops capacity building workshops to upskill policymakers and industry participants on the best practices required to navigate the transition to new vehicles
• Commissions evidence-based reports and policy tool kits for members to develop policy frameworks to support the adoption of new vehicle technologies and associated infrastructure.

Key Policy Recommendations of the AD

Policy frameworks are key to tackling climate change

APEC members are working to deliver on climate goals by supporting the uptake of low/zero emission vehicles. Examples of key recommended policies include:

• Developing economy-wide low/zero emission vehicle plans and strategies with input from all relevant sectors
• Subsidizing low emission vehicle sales that target the cleanest vehicles
• Using ‘feebates’ to disincentivize inefficient vehicles and incentivize more efficient vehicles
• Subsidizing the cost of vehicle charging infrastructure development
• Demonstrating leadership on climate change by procuring low emission vehicles for government fleets
• Establishing Vehicle Efficiency Standards
• Exempting import and excise duty, and sales taxes for electric vehicles (EVs)

However, APEC could do more to stimulate demand for low emission vehicles and ensure a just transition. Economies could:

• Support the rollout of EV charging infrastructure to ensure a comprehensive and coherent public charging network to ease ‘range anxiety’.
• Work with the electricity sector to ensure the grid is increasingly smart, reliable and low emission to support charging and manufacturing.
• Develop consumer awareness and education campaigns to ensure the benefits of low/zero emission vehicles are realized.

Scaling up production of low/zero emission vehicle batteries

Despite economies’ applaudable efforts to stimulate demand, vehicle manufacturers will face challenges in meeting increasing demand. Ensuring sufficient supply of critical minerals and materials will require government leadership to develop long-term resource plans. APEC members are encouraged to work with industry to:

• Invest in battery R&D to incentivize innovation and technology break throughs
• Collaborate to resolve supply chain issues and minimize costs to create a more stable and predictable supply of battery materials
• Enhance industry collaboration across the battery life cycle to ensure that batteries are designed for easy reuse, repurpose, and recycling
• Develop a circular economy model for batteries and EVs to be recycled
• Develop and harmonize international standards for sustainable batteries and supply-chains.

Background

The AD was established in recognition of the crosscutting nature of the automotive industry and of the broad benefits to many economies of trade liberalization and facilitation in this sector. It allows the public and private sectors to work together to improve policy development, to identify barriers to growth and to develop effective cooperation mechanisms for APEC economies to address and reduce impediments.

The AD engages participants in cooperative efforts to foster the growth and development of the regional auto industry and to provide actionable recommendations to APEC ministers and leaders.

Guided by the APEC Putrajaya Vision 2040, Aotearoa Plan of Action, APEC Connectivity Blueprint, APEC 2022 Leaders’ Declaration, and Bangkok Goals, the AD continues to discuss trade and trade-related regulatory issues affecting the competitiveness and sustainable development of the automotive industry in the Asia-Pacific region.

The dialogue will continue to focus its discussion on market access, including free trade agreements, tax structure and regimes, and non-tariff measures; trade and business facilitation; harmonization of standards and regulations; new technologies; and economic and technical cooperation related to the automotive industry in the Asia-Pacific region.

Events

The 39^th AD meeting was held in a hybrid format on 9-10 May 2024 in Arequipa, Peru. Various topics on auto industry were discussed including global and regional supply chain of electric vehicles and battery, post-pandemic auto industry and market updates, the use of artificial intelligence in connected autonomous vehicles, challenges and opportunities in the use of alternative energy sources such as green hydrogen/lithium, and technical regulation/standards on the automotive sector etc. 

The group is due to hold its 40^th AD meeting in 18-19 August 2024 in Lima, Peru, during SOM3. For information on this event, please contact the AD program director. 

Last page update: May 2024

Contacts