CHR News Desk
Mumbai Sept. 20:
The electric vehicle (EV) revolution in South and Southeast Asia could attract up to $1.3 trillion in green capital by 2030, according to a new report released ahead of Climate Week NYC.
The report, “Powering an Affordable EV Revolution in Emerging Asia,” was jointly published by LeapFrog Investments, Temasek, Mahindra Last Mile Mobility Limited, and Battery Smart, highlighting the rapid growth of EV adoption in the region, drawing parallels to China’s recent surge in electric mobility.
“There is a huge amount of capital looking to invest in the transition from fossil fuels to electric,” Andy Kuper, Founder and CEO of LeapFrog Investments told Bloomberg. “We see India as tremendously exciting,” he said.
The report finds that low-cost electric scooters and three-wheelers are now more affordable to own than traditional internal combustion engine vehicles in India. The analysis points to the lifetime cost of owning an electric vehicle as a key driver of demand, particularly among first-time vehicle buyers from low-income households.
In India, around 70% of electric three-wheeler buyers are from low-income backgrounds, and EVs are proving to be cheaper than petrol alternatives by $40 to $112 annually, the report shows. Mahindra estimates that commercial EV drivers can earn 20% more than those using diesel or CNG vehicles, thanks to lower operating costs.
Infrastructure investment is seen as crucial to maintaining this growth, with innovations such as battery swapping networks and charging stations being highlighted. Battery Smart, which operates 1,100 battery-swapping stations across India, claims the process takes less than two minutes and is helping drivers stay on the road longer while increasing their income.
Mobility emissions currently account for 10% of total greenhouse gas emissions in Asia. The report stresses the need for rapid electrification to prevent a significant rise in emissions as incomes in the region grow.
The social impact of the EV revolution is also noted, particularly for women in countries like India, Bangladesh, and Vietnam. E-scooters are giving women more independence and improving access to work while reducing fuel costs.
“The EV revolution in emerging markets is gathering pace,” said Souleymane Ba, Partner and Co-Head of Climate Investment Strategy at LeapFrog Investments. “We’ve identified a $1.3 trillion opportunity for the private sector to transform global transportation.”
Dr. Steve Howard, Vice Chairman of Sustainability at Temasek, emphasized the need for large-scale investment and supportive policies to maximize the impact of this transformation. “The progress in emerging Asia’s EV sector, combined with enabling policies, holds tremendous promise,” Howard said.
Mahindra’s CEO Suman Mishra and Battery Smart’s Co-Founder Pulkit Khurana echoed the optimism, pointing to the growing adoption of EVs in last-mile delivery fleets and the increasing affordability of electric options.
Suman Mishra, MD and CEO, Mahindra Last Mile Mobility Limited said, “Mahindra’s customer-first approach has helped to accelerate efforts to electrify the last mile transportation space across emerging Asia. As we continue to drive the electrification, we also remain committed to improving the lives of our customers, many of them micro-entrepreneurs, and supporting India’s journey towards reduced carbon emissions by providing sustainable and cost-effective solutions.”
Pulkit Khurana, Co-Founder and CEO, Battery Smart said, “In South and Southeast Asia, we are witnessing phenomenal growth in the EV sector. This report captures the development in this region and indicates a steady upward trajectory for the industry. The finding that 20% of all last-mile delivery fleets in India are now electric is a clear sign of broader adoption. Our Batteryas-a-Service model simplifies EV adoption by offering battery swaps in under two minutes, allowing drivers to stay on the road longer while also increasing their earnings.”
As demand for green mobility continues to rise across emerging Asia, the report underscores the importance of scaling EV infrastructure to keep pace with the region’s rapid urbanization and economic growth.
