The mobility sector is both a springboard into wealth creation, employment, and personal freedom, but also traditionally a major source of global emissions. Electrification, however, offers the chance to decouple the benefits of mobility from environmental harm. The Powering an affordable EV revolution in emerging Asia report showcases affordable entry points for electric mobility across the low-income markets of emerging Asia.
Powering an affordable EV revolution in emerging Asia
The mobility sector in the emerging markets of South and Southeast Asia is growing so rapidly that it could absorb up to US$1.3 trillion in green capital by 2030, mirroring recent phenomenal electric vehicle (EV) growth in China.
Analysis of the lifetime cost of owning an electric vehicle versus fossil-fuel powered vehicles highlights how electric scooters and electric three-wheelers have hit price tipping points across the region, spiking demand for green mobility even amongst first-time vehicle buyers.
Case studies from EV innovators Mahindra Last Mile Mobility Limited and Battery Smart also reveal how rapidly the manufacturing and infrastructure for EVs is increasing across the region, as vehicle buyers seek affordability, convenience and reliability in EVs.
Among the report’s findings:
Projected green capital demand for Mobility in emerging Asia (US$1.3 trillion) outstrips capital demand for the Energy (US$400 billion) and Food (US$350 billion) sectors combined.
Mobility emissions represent 10% of total GHG emissions across Asia, but 25% of Europe’s emissions and 30% of the US’s, making rapid electrification critical to avoid a spike in emissions as incomes in emerging Asia rise.
In India, electric scooters and three-wheelers are currently around US$40-US$112 cheaper per year to own than petrol alternatives based on the total cost of ownership. Mahindra estimates around 70% of EV three-wheeler customers are first-time buyers from low-income backgrounds.
An increasingly efficient network of battery swapping stations, supported by interoperable battery systems across vehicle manufacturers, has dramatically improved re-fueling infrastructure for EVs. Battery Smart estimates it takes less than 2 minutes to exchange a battery at one of its 1,100 swapping stations across India.
Improved charging/refueling infrastructure is making EV ownership particularly attractive for commercial users. In India, EVs now account for an estimated 20% of three-wheeler last-mile-transportation (passenger and cargo) fleets. Mahindra estimates commercial EV drivers generate 20% more income versus CNG/diesel vehicles due to lower operating costs for electric three-wheelers.
The report also highlights the social dimension of the electric mobility revolution across emerging Asia. For women in particular, access to mobility has a magnifying impact on equality of opportunity. Women in India, Bangladesh and Vietnam are increasingly taking ownership of their safety as they drive independently to their workplaces while cutting down fuel costs through e-scooter ownership. At the same time, innovators and investors are rapidly addressing key constraints to adoption like upfront capital costs, range anxiety and related infrastructure penetration issues as companies across the electric mobility ecosystem scale up.
This report is jointly produced by LeapFrog Investments, Temasek, Mahindra Last Mile Mobility Limited and Battery Smart .
