The automotive industry in Southeast Asia continues its recovery from the adverse economic effects of the COVID-19 pandemic, which stifled growth, research and development (R&D), and sales. According to Statista Research, Thailand led the way in motor vehicles produced in 2022, reaching 1.88 million. Indonesia followed closely with 1.47 million, Malaysia with 702,280, and Vietnam with 232,410.

Manufacturers and motor vehicle experts have been innovating and designing novel technologies to help the automotive industry transition to the ways of the future. One such development that has been gathering pace in recent years is the Light Detection and Ranging system, or LiDAR for short. 

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LiDAR uses automotive sensors, scanners, and lasers to determine distances, enabling it to map the environment and convey the data to the vehicle’s processing system. Thus, it plays a vital role in autonomous driving, allowing drivers to take their hands off their steering wheel and let the artificial intelligence (AI) configured in the car do the driving. McKinsey & Co. states that the self-driving industry will create USD 300 billion to USD 400 billion by 2035.

Laser imaging technology has become an integral part of the motor vehicle sector, as it is currently in use in many of the cars earmarked to drive themselves through select areas, providing shared taxi services. Google’s Waymo and General Motors’ Cruise car brands use LiDAR in their robotaxis, serving customers in places like San Francisco, USA.

In the Association of Southeast Asian Nations (ASEAN), each country is at different levels of deploying the technology. Singapore is ahead of other countries but has the challenge of limited space. Malaysia follows suit, with examples like making regulatory changes to ensure proper tech use. Testing continues in other countries, but poorer countries, such as Myanmar, can end up struggling or being left behind by the rest of the region.

Growing interest in autonomous vehicles (AVs) in Southeast Asia

Many cars have LiDAR installed on their roofs, which spins around to ping laser beams against surfaces and objects, creating a 3D map of the surroundings and recognising objects. However, this system is pricey, meaning the cost of buying a self-driving vehicle will be high. Leading manufacturer Velodyne Lidar has created a smaller, cheaper, and more efficient solution, which can now bring car prices down. 

The rise in environmental awareness in ASEAN means consumers want to buy from manufacturers developing eco-friendly vehicles that use renewable energy sources. Thus, electric vehicles (EVs) have emerged as the ideal LiDAR tech partners, with the market expected to generate revenues of USD 1.51 billion in 2024.

EVs have limitations such as slow customer adoption, high prices, inadequate investor and government funding and support, infrastructure challenges, and more.

Why people want autonomous vehicles

People want AVs because they provide a 360-degree view of the surroundings, reduce accidents by detecting objects through their sensors, and enable inclusiveness by allowing people with disabilities to use them. Moreover, AVs reduce pollution caused by CO2 emissions by easing congestion. They also offer better fuel economy and reduce costs through shared taxis, cheaper insurance, contactless deliveries, and more.

Nevertheless, AVs come with challenges like the high cost of implementation, inadequate government support, data privacy issues, the cost of technologies like LiDAR, and limited investor funding. Furthermore, there have been instances where they have caused fatal accidents due to tech blindspots. They also need to improve functionality in challenging weather.

The best way to overcome these challenges is to conduct R&D to innovate novel solutions for the AV industry. Secondly, they must ensure they develop technologies that are efficient yet affordable. Otherwise, they will continue struggling to get buyers to purchase an expensive vehicle simply because it is autonomous.

Thirdly, companies must protect customer data, including data collected by the vehicle software. They should also be careful when gathering data on safety and efficiency, as they need their customers to feel safe by asking for their consent. 

Future of ASEAN’s automotive industry 

According to a report by professional services firm PriceWaterhouseCoopers (PWC), the future of the automotive industry will include electrified cars that enable autonomous driving. Moreover, the vehicles will likely be shared on demand, connected, and constantly updated. These changes mean mobility will be more flexible, effortless, and accommodating for ASEAN citizens.

Furthermore, vehicle electrification will make driving an emissions-free endeavour, reducing harmful fumes in the air and protecting the environment from the effects of carbon dioxide. The increase in young, tech-savvy citizens in the region will ensure advances in AI and ML to boost the development of autonomous vehicles, limiting traffic congestions that cause pollution.

With technologies like automotive sensors and LiDAR, the automotive industry in Southeast Asia can address the logistical, safety, and sustainability issues affecting its people.