A recent report by the UNEP Global Electric Mobility Programme, funded by the Global Environment Facility (GEF) estimates that 570 million two and three-wheelers currently dominate the roads of Africa, Asia, and Latin America. The majority still rely on internal combustion engines (ICE) and petroleum fuels, collectively consuming 15% to 20% of non-OECD countries’ liquid petroleum fuels for transport annually.

The potential for positive environmental impact is substantial, with the transition to electric vehicles having the capacity to reduce between 500 and 600 million metric tons of CO2 equivalent each year. This potential grows even more significant as the markets for these vehicles continue expanding. UNEP classifies over 800 electric two and three-wheeler models across three regions, providing insights into technical specifications, charging technologies, and usage patterns. Notably, Asia emerges as the leader in manufacturing, with China playing a pivotal role and other countries like Vietnam and Indonesia rapidly increasing their production capacities.  

In Asia, the transition to electric has been quite progressive with an estimated 7% of the 490 million two and three-wheelers being electric. Government support and innovative battery-swapping mechanisms contribute to Asia’s dominance in this market. Despite regional variations, the report underscores the economic benefits of electric two and three-wheelers, highlighting potential fuel cost savings and urging the need for significant capital investment alongside supportive policy and regulatory frameworks for a safe, just, and environmentally sustainable transition.

For in-depth insight, read the report here.