$1.3 trillion opportunity for EV revolution in emerging Asia, India holds the future: Report

Mumbai: The mobility sector in the emerging markets of South and Southeast Asia could absorb up to $1.3 trillion in green capital by 2030 and India holds the future, a new report said on Friday.

In India, electric scooters and three-wheelers are currently around $40- $112 cheaper per year to own than petrol alternatives based on the total cost of ownership.

The report, prepared by LeapFrog Investments, Temasek, Mahindra Last Mile Mobility Limited and Battery Smart, mentioned that 70 per cent of electric three-wheeler buyers in India are low-income, first-time buyers.

Mobility emissions represent 10 per cent of total GHG emissions across Asia, but 25 per cent of Europe’s emissions and 30 per cent of the US, making rapid electrification critical to avoid a spike in emissions as incomes in emerging Asia rise, the report said.

“The electric mobility revolution across high growth markets is gathering pace. We have identified a $1.3 trillion opportunity for the private markets and impact investment community to transform our global transportation future,” said Souleymane Ba, Partner and Co-Head of Climate Investment Strategy, LeapFrog Investments.

An increasingly efficient network of battery swapping stations, supported by interoperable battery systems across vehicle manufacturers, has dramatically improved re-fueling infrastructure for EVs.

Improved charging/refueling infrastructure is making EV ownership particularly attractive for commercial users. In India, EVs now account for an estimated 20 per cent of three-wheeler last-mile transportation (passenger and cargo) fleets.

Dr Steve Howard, Vice Chairman, Sustainability, Temasek, said that the technology improvements and business innovation they are seeing in emerging Asia’s EV sector, when coupled with enabling policies and substantial investments, “hold tremendous promise for transformative impact at pace and at scale”.

Suman Mishra, MD and CEO, Mahindra Last Mile Mobility said they remain committed to supporting India's journey towards reduced carbon emissions by providing sustainable and cost-effective solutions.

India is already the world’s largest electric three-wheeler market and is uniquely positioned to achieve full electrification of the category.