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EV Transition in BRICS+ Remains Reliant on Subsidy Support
Electric cars and other electric vehicles are becoming more common in BRICS+ countries.
Many governments help people buy them with subsidies, or price discounts.
These programs often focus on cheaper two-wheelers, three-wheelers, public transport, or shared transport.
India is supporting electric two-wheelers and three-wheelers through PM E-DRIVE.
But India’s two-wheeler subsidy is being reduced as the market grows.
Indonesia saw purchases rise when subsidies were available and fall after support changed.
Indonesia later renewed its support.
A report says predictable rules help buyers and businesses stay confident.
This matters because many BRICS+ countries import oil, and electric vehicles can reduce oil use.
At least seven BRICS+ economies subsidize lower-cost electric vehicles or shared transport.
India’s PM E-DRIVE support for electric two-wheelers fell from $53 to $26.5 per kWh in April 2025.
Indonesia’s subsidized electric two-wheeler purchases exceeded 77,000 in 2024 before declining in 2025.
India allocated $293 million under PM E-DRIVE for up to 4.58 million electric two-wheelers.
The IISD says predictable, gradual policy changes are essential for sustaining EV adoption.
- Who
- Governments in BRICS+ economies, including India, Indonesia, China, Malaysia and Thailand, and the International Institute for Sustainable Development.
- What
- BRICS+ economies are using and adjusting subsidies to encourage electric-vehicle adoption, especially among lower- and middle-income consumers.
- Where
- Across the 21 economies of BRICS+.
- When
- India reduced its electric two-wheeler support from April 2025; other figures cover 2024, 2025, FY26, July 2026 and early August 2026.
- Why
- To accelerate vehicle electrification, support mass-market transport and reduce dependence on imported oil.
Policy Continuity Advocates
Market-Adjustment Advocates
How subsidies should change
Policy Continuity Advocates
The International Institute for Sustainable Development says predictable and continuous support helps maintain consumer and business confidence; Indonesia’s renewed support illustrates this approach.
Market-Adjustment Advocates
Support can be reduced or adjusted as EV markets mature, as India has done by lowering its electric two-wheeler subsidy.
Main policy priority
Policy Continuity Advocates
Governments should provide clear timelines and make gradual changes so consumers continue adopting electric vehicles.
Market-Adjustment Advocates
Governments can target limited funds toward mass-market vehicles and adjust incentives to reflect changing market conditions.
Key facts
- Economies offering targeted support
- At least seven BRICS+ economies—Brazil, China, Ethiopia, Indonesia, Malaysia, Thailand and India—support lower-cost vehicles, public transport or shared mobility.
- India’s subsidy change
- Support for electric two-wheelers fell from $53 per kWh to $26.5 per kWh from April 2025, capped at $53 per vehicle or 15% of cost.
- India registrations
- About 2.37 million electric two-wheelers had been registered under PM E-DRIVE by early August 2026.
- India’s allocation
- PM E-DRIVE earmarked $293 million for up to 4.58 million electric two-wheelers.
- Indonesia’s subsidy effect
- Subsidized electric two-wheeler purchases exceeded 77,000 in 2024, then declined in 2025 after subsidy changes.
- Oil dependence
- Fourteen of the 21 BRICS+ economies, representing about 84% of the bloc’s population, are net oil importers.
- Projected oil displacement
- EVs displaced about 1.7 million barrels per day of oil in 2025, projected to approach 5 million barrels per day by 2030.
Quotes
International Institute for Sustainable Development
Research institute whose assessment examines EV policy and adoption across BRICS+ economies
“The next test of EV policy is therefore not just how fast countries electrify, but who benefits first”
financialexpress.com
“maintain policy continuity while adjusting support as markets develop”
financialexpress.com
Sources
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