• Low-cost electric scooters and three-wheelers now cheaper to own than internal combustion engine equivalents in India
• Investment in enabling EV infrastructure and business models such as battery swapping and charging networks critical to accelerate the mobility revolution
• ~70% of electric three-wheeler buyers in India are low-income, first-time buyers

Mumbai / New York – 20 September 2024: The mobility sector in the emerging markets of South and Southeast Asia is growing so rapidly that it could absorb up to $1.3 trillion in green capital by 2030, mirroring recent phenomenal electric vehicle (EV) growth in China, a new report has found.

The Powering an affordable EV revolution in emerging Asia report, released today ahead of Climate Week NYC by investors LeapFrog Investments and Temasek, alongside electric mobility companies Mahindra Last Mile Mobility Limited and Battery Smart, showcases affordable entry points for electric mobility across the low-income markets of emerging Asia.  

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.

Souleymane Ba, Partner and Co-Head of Climate Investment Strategy, LeapFrog Investments, 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. At LeapFrog we are committed to supporting low-income consumers across some of the world’s fastest growing markets through investing in the most innovative companies addressing critical parts of the EV ecosystem, pursuing our profit with purpose philosophy.”

Dr Steve Howard, Vice Chairman, Sustainability, Temasek, said: “As a generational investor, we invest for sustainable returns over the long term, and to generate a positive impact on people and planet. Accelerating our collective progress to net zero will require a systems-based, all-hands-on-deck approach. The technology improvements and business innovation we’re 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 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 Battery-as-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.”

LeapFrog invests in healthcare, financial services and climate solutions businesses in high-growth global markets. Its companies deliver distinctive impact and robust returns, growing revenues on average 23% a year. LeapFrog companies now reach 537 million people in 37 countries. The firm has raised billions of dollars from global institutional investors, including a US$500m commitment by Temasek to LeapFrog and its growth equity funds. LeapFrog has twice been ranked by Fortune as one of the top Companies to Change the World and was named inaugural Pioneer in Impact by the FT and IFC at the Transformational Business Awards. For more information, go to: www.leapfroginvest.com.

LeapFrog Media Contact

Montfort Communications – LeapFrog@Montfort.London

Temasek is a global investment company headquartered in Singapore, with a net portfolio value of S$389 billion (US$288b) as at 31 March 2024.

Temasek’s Purpose “So Every Generation Prospers” guides it to make a difference for today’s and future generations. Operating on commercial principles, Temasek seeks to deliver sustainable returns over the long term.

It has 13 offices in 9 countries around the world: Beijing, Hanoi, Mumbai, Shanghai, Shenzhen, and Singapore in Asia; and Brussels, London, Mexico City, New York, Paris, San Francisco, and Washington, DC outside Asia.

For more information on Temasek, please visit www.temasek.com.sg.

Mahindra Last Mile Mobility Limited, a subsidiary of M&M, is responsible for the Company’s widely acclaimed mix of electric, petrol, CNG, diesel last mile mobility 3 and 4-wheeler passenger and cargo vehicles. These include the Mahindra Jeeto 4-wheeler, Alfa range of 3-wheelers, and the electric-only Zor Grand and Treo range.

Learn more about Mahindra LMM at mahindralastmilemobility.com, on X/LinkedIn/Instagram (@mahindralmm), and Facebook (@MahindraLastMileMobility).

Battery Smart is India’s largest and fastest-growing battery-swapping network for electric two and threewheelers. The company was co-founded by IIT-Kanpur graduates Pulkit Khurana and Siddharth Sikka in 2019 – to make EV adoption simple, economical, and accessible through a unique partner-led model. Battery Smart has completed 45 million+ battery swaps, set up 1200+ swap stations, and works with over 55,000+ vehicles across 35+ cities.

For more information, please visit: www.batterysmart.in