Business Outlook
- Labour Shortage: Manpower shortage in Hong Kong means it will have a challenging time to support the continuous growth of the industry.
- Decarbonisation: the HKSAR Government has promulgated to cease new registrations of internal combustion engine (ICE) private cars, including hybrid vehicles by 2035, and set a timeline for the public to follow.
- Technological Challenge: Maintaining a skilled workforce and staying up-to-date with evolving automotive technologies is a challenge for the vehicle servicing sector.
- EV Infrastructure: Establishing a robust charging infrastructure is essential to support widespread adoption of EVs. However, expanding the charging network across the city requires significant investment and coordination among various stakeholders.
- A Period of Radical Change: There is a paradigm shift taking place in the automobile industry. In addition to electrification, vehicles in the future will be connected and autonomous. The industry will have to switch its focus from production and technical product to intelligent mobility and enhanced customer experience.
- Development of a Smart City: Hong Kong's emphasis on smart city initiatives opens opportunities for companies to develop and integrate connected car technologies.
- Autonomous Driving: While autonomous vehicles are still in the early stages of development, there is potential for local companies to explore autonomous driving technology and its applications in Hong Kong.
- Aftermarket Services and Maintenance: As the number of vehicles on the road increases, there is a corresponding demand for maintenance, repair, and customisation services. Companies can tap into this opportunity by providing customer-oriented aftermarket services such as vehicle servicing, spare parts supply, and vehicle customisation
- Charging Infrastructure Development: Previously, the HKSAR Government arranged a pilot subsidy scheme to promote installation of EV charging-enabling infrastructure (EVCEI) in car parks of existing private residential buildings. On the other hand, companies can seize the opportunity by investing in the development and installation of EV charging stations across the city.
- New Energy Commercial Vehicles: With the growth of e-commerce and the increasing emphasis on sustainability, there is a need for green logistics solutions in Hong Kong. Companies can explore opportunities to provide electric or hydrogen fuel cell commercial vehicles for last-mile deliveries.
