Brics+ economies are increasingly targeting two-wheelers, three-wheelers and public transport to make EV adoption more inclusive and reduce oil dependence
India is among seven Brics+ economies directing electric vehicle support towards two- and three-wheelers, buses and shared transport, highlighting a broader shift towards making clean mobility more affordable while reducing oil dependence and strengthening domestic manufacturing, according to a report by the International Institute for Sustainable Development (IISD).
The seven economies — Brazil, China, Ethiopia, India, Indonesia, Malaysia and Thailand — are using policies to promote electric mobility beyond private passenger cars, the IISD report said.
The finding comes ahead of the Brics leaders summit in New Delhi on September 12-13, where trade, energy, technology and industrial cooperation are expected to feature prominently.
For India, the shift is significant because two-wheelers and shared transport serve a far larger section of the population than private cars. Supporting these segments can potentially accelerate electrification while reducing petrol and diesel consumption.
India puts two-wheelers, buses at the centre
Electric two-wheelers accounted for a record 11 per cent of total two-wheeler sales in July 2026, up from around 0.4 per cent in the first half of 2021, according to the IISD.
The growth has been supported by government programmes including FAME-I, FAME-II and the current PM E-DRIVE scheme.
More from BusinessIndia sold more than 21 million two-wheelers in 2025-26, around five times the number of passenger cars sold. This makes electric scooters and motorcycles a potentially more important route to mass electrification than private electric cars.
Government support is also extending to public and commercial transport.
The PM-eBus Sewa programme is supporting the deployment of nearly 10,000 electric buses across 115 cities, while PM E-DRIVE supports commercial electric three-wheelers, including e-rickshaws and e-carts.
By July 2026, contracts had been awarded for 5,647 buses across 79 cities under PM-eBus Sewa, while operating agreements had been signed for 4,330 buses across 53 cities, the IISD said.
The focus on buses also addresses India’s shortage of public transport. Government estimates suggest cities with populations above 300,000 will need around 155,000 buses by 2029 to meet basic service levels.
Why EV policy is shifting beyond cars
The IISD argues that EV policies can deliver wider public benefits when they focus on transport modes used extensively by lower- and middle-income households rather than concentrating incentives on private cars.
Electric two-wheelers are widely used for commuting and livelihoods, while three-wheelers and buses provide passenger and goods transport without requiring private car ownership.
This makes EV policy a question not only of how many electric vehicles are sold, but also of which vehicles receive public support and who benefits from it.
“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,” Sunil Mani, policy adviser at IISD, said.
Around 84 per cent of the Brics+ population lives in economies that are net importers of crude oil and petroleum products, according to the IISD.
Road transport accounts for around 45 per cent of global oil demand. Greater use of electric two-wheelers, three-wheelers and buses could therefore help reduce oil consumption and exposure to global price volatility.
From EV adoption to manufacturing
India’s EV strategy is also increasingly linked to its push to build domestic manufacturing capabilities.
The PLI-Auto scheme, approved in 2021 with an outlay of Rs 25,938 crore, aims to develop manufacturing capabilities for advanced automotive technology products, including EVs. Eligible products are subject to a minimum 50 per cent domestic value-addition requirement.
As of March 31, 2026, approved applicants had reported investments of Rs 44,326 crore under the scheme, according to the Ministry of Heavy Industries.
India had also installed 67,657 EV chargers as of August 7, indicating the growing focus on charging infrastructure alongside vehicle adoption.
The manufacturing challenge extends beyond assembling vehicles. EVs rely heavily on batteries, semiconductors, power electronics, sensors and other advanced components.
That makes localisation of these technologies increasingly important for India’s ambition to build a resilient EV supply chain.
Can Brics strengthen India’s EV supply chain?
This is where the Brics grouping could become relevant to India’s broader industrial strategy.
India is seeking to diversify supply chains and strengthen its position in advanced manufacturing, including EV components. Brics+ economies can potentially provide new markets, technology partnerships and sources of raw materials and components.
The opportunity is particularly relevant for batteries, critical minerals, semiconductors and power electronics, where global supply chains remain concentrated in a few markets.
However, becoming a credible alternative manufacturing hub will require more than government incentives. Indian manufacturers will need competitive costs, reliable supply chains, technological capabilities and access to overseas markets.
