Mahindra continues to drive electrification in EVs, says Mishra
The mobility sector in the emerging markets of South and Southeast Asia is could absorb up to US$1.3 trillion in green capital by 2030, according to an industry report based on case studies from EV innovators Mahindra Last Mile Mobility Limited ( auto.mahindra ) and Battery Smart .
The report also reveals how rapidly the manufacturing and infrastructure for EVs is increasing across the region, as vehicle buyers seek affordability, convenience and reliability in EVs.
The Powering an affordable EV revolution in emerging Asia report, released on 20 Sept ahead of Climate Week NYC by investors LeapFrog Investments and Singapore’s 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.
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.”
Dr Steve Howard, Vice Chairman, Sustainability, Temasek, said on 20 Sept, “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.”
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 US$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.”
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.
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. Fiinews.com
