A recent report from S&P Global Ratings reveals that South and Southeast Asia are set to invest over $20 billion in electric vehicle (EV) infrastructure and production over the next few years. The report highlights India’s rapidly growing market potential as a major driver, with substantial investments flowing into EV manufacturing and related materials.
According to the report, major Indian conglomerates Tata and JSW are anticipated to lead this shift, collectively allocating more than $30 billion over the next decade toward EV production and materials, with around $10 billion specifically earmarked for South and Southeast Asia.
India’s EV adoption is expected to accelerate as new models are introduced at prices comparable to traditional internal combustion engine (ICE) vehicles, and as charging infrastructure improves. S&P Global Ratings forecasts that hybrid and compressed natural gas (CNG) vehicles will hold a notable share of India’s light-vehicle and commercial passenger vehicle markets alongside EVs.
“The transition from ICE in India will initially be more about a shift to alternate fuels rather than pure electrification,” the report noted.
The report also emphasized the role of government policies in shaping India’s EV landscape, particularly with regard to import and foreign investment regulations. While policies aim to bolster local production, India is expected to rely on imports, such as batteries, to meet EV production goals over the next three years.
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