In a joint report published on Friday, Singapore’s state investor Temasek and private equity firm LeapFrog Investments projected that India alone will require around $900 billion to meet its EV demands, while Southeast Asia will need $365 billion. The scale of investment needed to decarbonise transport in these emerging markets surpasses requirements in other sectors, such as the built environment and energy transitions, which will need $1.2 trillion and $400 billion, respectively.
Although Asia is responsible for 42 percent of global greenhouse gas emissions, the mobility sector contributes only 10 percent, significantly lower than Europe’s 25 percent and the United States’ 30 percent. The report underlines the vital role of electric vehicles in reducing emissions in these regions, particularly as demand rises with economic growth.
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In India, two- and three-wheeler EVs have already reached a tipping point in price competitiveness due to lower running costs, maintenance, and government subsidies, making them increasingly attractive under a total-cost-of-ownership model.
The report’s findings highlight the immense potential for electric vehicle adoption across India and Southeast Asia, with both regions expected to be pivotal players in the global shift towards cleaner transport solutions.
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