The latest Grant Thornton International Business Report (IBR) reveals that only 7% of companies in mainland China and 12% in Hong Kong are considering vehicles that run on alternative fuel for their business, lagging far behind the global average of 24%.

Companies are a powerful consumer group and if there is to be continued investment in alternative fuel vehicles, this shortfall in enthusiasm in Hong Kong needs to be addressed, says the report.

The IBR survey shows that businesses in Asia Pacific are most likely to consider alternative-fuel vehicles.

The top three most interested countries globally are Japan (48%), Malaysia (46%) and the Philippines (46%), demonstrating higher interests than European countries and the United States of America, which are often considered to be more committed to sustainable practices and environmentally conscious.

Though Hong Kong has branded itself ‘Asia’s World City’, it is comparatively more conservative with only 12% of businesses showing interest in alternative-fuel vehicles.

Price of oil (58%), tax relief (42%) and cost management (34%) are the key drivers of demand for alternative-fuel vehicles; where 33% of Hong Kong businesses also identified ‘saving the planet’ as a driving demand.

“There is still obvious room for the Hong Kong Government to enhance the promotion and development of alternative-fuel vehicles," says Daniel Lin, managing partner at Grant Thornton Jingdu Tianhua.