$1.3 trillion worth opportunity for emerging EV markets: Report

The mobility industry in South and Southeast Asia's growing countries may absorb up to $1.3 trillion in green capital by 2030, with India leading the way, according to a new analysis published on Friday by LeapFrog Investments, Temasek, Mahindra Last Mile Mobility Limited, and Battery Smart.

Souleymane Ba, partner and co-head of climate investment strategy at LeapFrog Investments, indicated that they have identified a $1.3 trillion potential for private markets and the impact investing community to transform the future of mobility.

According to the study, the cost of owning an electric vehicle is less than that of internal combustion engine counterparts in India. The survey further underlines that electric scooters and three-wheelers are already $40-$112 less expensive per year to acquire than fuel alternatives.

"Low-cost electric scooters and three-wheelers are now cheaper to own than internal combustion engine equivalents in India," according to the study.

The demand, mainly from first-time buyers, is driving the emerging opportunity. Mahindra believes over 70% of electric vehicle (EV) three-wheeler customers are first-time purchasers from low-income households. 

Case studies by Mahindra Last Mile Mobility Limited and Battery Smart show that EV production and infrastructure are expanding throughout the area.

The potential is being driven by a rise in demand, mostly from first-time buyers. Mahindra believes that over 70% of electric vehicle (EV) three-wheeler customers are first-time purchasers from low-income households.

Case studies by Mahindra Last Mile Mobility Limited and Battery Smart show that EV production and infrastructure are expanding throughout the area.

However, the study does highlight an urgent requirement for investment in infrastructures like battery-swapping facilities and charging networks that can help thrust this transformation forward. Mobility emissions are 10 per cent of Asia's total greenhouse gas emissions, but 25 per cent of Europe's and 30 per cent of the United States, making fast electrification a necessity as incomes in developing Asia grow, the report said.

An increasingly efficient network of battery switching stations, backed up by compatible battery systems from various car manufacturers, has significantly enhanced EV recharging infrastructure.