At Least Seven BRICS+ Countries Steer EV Support Away from Cars, Toward Buses and Two-Wheelers for Lower-Income Riders

New Delhi, September 4, 2026 —As BRICS+ leaders prepare to meet in New Delhi, new analysis finds that at least seven BRICS+ countries—Brazil, China, Ethiopia, India, Indonesia, Malaysia, and Thailand—are directing electric (EV) support toward two- and three-wheelers, as well as public and shared transport.

This approach can advance affordable mobility, improve equity, reduce oil consumption, cut pollution, and help oil-importing economies limit exposure to volatile global oil markets, according to a new analysis by the International Institute for Sustainable Development (IISD). The study finds that EV policies can deliver public benefits when they support affordable transport modes used by lower-income groups, rather than primarily subsidizing private cars for higher-income consumers.

Around 84% of the BRICS+ population lives in net oil-importing economies, leaving households and governments exposed to volatile global oil prices. With road transport accounting for nearly half of global oil demand, the transition to electric mobility offers BRICS+ economies a major opportunity to reduce oil dependence, strengthen energy security, and build economic resilience.

“For oil-importing economies, the EV transition is about more than emissions—it is about reducing exposure to a global oil market and protecting low-income households from price shocks,” said Sunil Mani, policy advisor at IISD. “But programs focusing on private cars can end up subsidizing the rich. In contrast, incentives can scale the transport modes used by millions of lower-income people every day, targeting the benefits while achieving the same energy security objectives.”

EV Policy Can be More Inclusive When it Follows How Lower-income People Move

The analysis identifies two practical approaches for making electrification inclusive, illustrated by policy examples from selected BRICS+ countries. The first focuses on relatively affordable and widely used personal vehicles, including motorcycles, scooters, and e-bicycles, which are often the primary mode of transport, especially for lower-income users in several BRICS+ countries, including India, Indonesia, Thailand, and Malaysia. For example, in India, over 21 million two-wheelers were sold in the 2025/2026 fiscal year, five times passenger car sales. Sustained support from the Government of India helped electric two-wheeler uptake rise from around 0.4% of two-wheeler sales in the first half of 2021 to a record 11% by July 2026. Similarly, China’s e-bicycle trade-in program supported 12.5 million purchases in 2025 alone.

The second approach electrifies public and shared transport—buses, three-wheelers, and minibuses—extending the benefits of electrification generally, regardless of whether users own a vehicle. China operated more than 544,000 new-energy public buses by the end of 2024, over 80% of its urban bus fleet. Brazil has allocated USD 1.7 billion to finance electric buses across 61 cities, helping expand access to cleaner transport for lower-income commuters.

Some countries use both approaches concurrently. For instance, China combines support for widely used e-bicycles with large-scale electrification of public buses, while India supports electric two-wheelers alongside buses and shared three-wheelers. Together, these examples show how countries can use different forms of EV support to address both individual mobility and shared transport needs.

Predictable Policy and Accessible Financing Determine Whether These Pathways Succeed

The analysis also finds that inclusive EV transitions require consistent and predictable policies, affordable financing, and accessible charging infrastructure. India and Indonesia illustrate the importance of policy stability: India has experienced sustained EV uptake supported by successive government programs, while Indonesia’s EV sales declined after an important support scheme was rolled back in 2025, showing how policy uncertainty can quickly dampen demand.

In South Africa, privately operated minibus taxis are a major part of everyday mobility, making their electrification an important way to reduce reliance on imported oil. Yet higher upfront costs and gaps in affordable, reliable charging can make the transition difficult for small operators. Addressing these barriers through affordable finance and charging could provide a pathway for emerging economies that depend on privately operated shared transport.

“The question for policy-makers is not simply whether to incentivize EVs, but which EVs and types of support can deliver the greatest public benefit,” said Godwin Paul Chandra Sekar, policy analyst at IISD. “Public money should be used to reduce inequality and deliver affordable transport. That means looking beyond private cars to vehicles that underpin everyday mobility for millions of people. The right incentives will vary by market, but they need to work alongside predictable policy, affordable finance, and accessible charging.”

The findings offer lessons for emerging and developing economies beyond BRICS+: design EV support around how most people travel; focus public support on widely used and affordable transport modes; and pair incentives with predictable policy, affordable finance, and accessible and reliable charging infrastructure.

Media Contact

Madhulika Verma, Senior Communications Officer, IISD; [email protected]
Sunil Mani, Policy Advisor, IISD; [email protected]