Emerging Asia's Booming EV Sector Could Attract $1.3 Trillion in Green Capital by 2030

The mobility sector in South and Southeast Asia is growing rapidly, potentially attracting up to $1.3 trillion in green capital by 2030. A recent report highlights the increasing demand for electric vehicles (EVs) in these regions, driven by affordability and the need for sustainable travel solutions. Manufacturing and infrastructure advancements are key enablers.

Emerging markets in South and Southeast Asia's mobility sector are poised for rapid growth, with projections estimating up to $1.3 trillion in green capital investments by 2030, a new report reveals.

The 'Powering an affordable EV revolution in emerging Asia' report, launched ahead of Climate Week NYC by LeapFrog Investments and Temasek, along with partners Mahindra Last Mile Mobility Limited and Battery Smart, emphasizes affordable entry points for electric mobility in low-income markets.

The analysis compared the lifetime costs of owning electric versus fossil-fueled vehicles, noting that electric scooters and three-wheelers have reached a price tipping point, spurring increased demand. Case studies show significant advancements in EV manufacturing and infrastructure within the region.

The report also noted that green capital demand for mobility outstrips that of the energy and food sectors combined. Mobility emissions account for a substantial portion of GHG emissions in Asia, making rapid electrification crucial. Specific to India, EVs offer considerable savings and increased income for drivers, particularly first-time buyers from low-income backgrounds. Innovations like battery swapping stations have enhanced the re-fueling infrastructure, greatly reducing exchange times.

Women's access to mobility is highlighted as having a significant impact on gender equality, showing an increase in e-scooter ownership for safer, cost-effective travel. Despite challenges like upfront costs and range anxiety, continuous improvements in technology and supportive policies are paving the way for broader EV adoption.

Key industry leaders affirm the transformative potential of the mobility sector's growth. Steve Howard of Temasek, Suman Mishra of Mahindra Last Mile Mobility, and Pulkit Khurana of Battery Smart all echoed optimism regarding the sector's future and its role in climate action. Souleymane Ba of LeapFrog Investments identified a $1.3 trillion opportunity for private markets to reshape global transportation.

(With inputs from agencies.)