Making Electric Vehicles Work for More People: What BRICS+ Countries Are Doing Differently

At least seven of the 21 BRICS+ economies are directing subsidies toward electric vehicles (EVs) and transport services widely used by lower- and middle-income people — from two- and three-wheelers to buses and shared transport. EVs are often portrayed as products for affluent households. Yet some BRICS+ economies direct support to electric two- and three-wheelers (E2Ws and E3Ws), buses, and shared transport, widely used by two-wheeler riders, auto-rickshaw drivers, delivery workers and bus passengers. These groups are less likely to benefit from private-car subsidies, even though the modes they rely on account for a significant share of everyday mobility in many emerging economies.

Transport electrification can therefore offer more than climate benefits: depending on policy design, it can reduce exposure to volatile fossil fuel costs and make cleaner mobility more accessible to a broader section of the population.

This story examines how selected BRICS+ economies are extending EV support to lower- and middle-income users, how this has improved affordable transport, and what other emerging economies can learn. Two approaches stand out: supporting relatively affordable vehicles and electrifying public and shared transport.

About BRICS+ and the Scope of This Story

BRICS+ brings together 11 member countries — Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates — and 10 partner countries: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Viet Nam.

This review identifies at least seven economies — Brazil, China, Ethiopia, India, Indonesia, Malaysia, and Thailand — with concrete policies that direct EV support toward lower-cost personal vehicles or public and shared transport used by lower- and middle-income people.

We assess policies that directly shape EV uptake and access, including purchase support, public procurement, finance, and selected regulatory measures. Manufacturing, trade, and wider infrastructure policies are generally outside the scope of this story, although they also affect EV costs and availability.

Why Inclusive EV Policy Matters Now

Around 80% of the world’s population lives in countries that are net oil importers. This figure is even higher across BRICS+, where 14 of 21 economies, accounting for around 84% of the group’s population, are net importers of crude oil and petroleum products (see figure below). This dependence leaves households and governments exposed to international oil price volatility, which can raise transport costs and wider inflationary pressures. Even some net crude-oil exporters remain exposed if they import fuel products or price them at international rates.

The 2026 Strait of Hormuz disruption brought this exposure into focus. Around a quarter of global seaborne oil trade passed through the strait in 2025, with China and India together receiving 44% of the crude oil flowing through it. The disruption sharply reduced flows and drove renewed oil-market volatility.

Oil price shocks can also create fiscal pressures when governments intervene to cushion consumers. The figure below shows that petroleum product subsidies across BRICS+ have tended to rise during periods of high global oil prices. By artificially reducing prices for consumers, consumption subsidies for petroleum products also erode the economic case for clean alternatives. Comparable subsidy data are available only through 2024, so the figure does not yet capture responses to the 2026 disruption.

Road transport accounts for around 45% of global oil demand, making electrification an important route to reducing oil dependence. Globally, EVs displaced ~1.7 million barrels per day (mbpd) of oil in 2025, roughly Indonesia’s daily consumption, and this is projected to approach 5 mbpd by 2030. Falling battery costs and growing competition are making EVs more affordable. Governments can accelerate uptake through subsidies, public procurement, regulation, and enabling infrastructure — but how these tools are targeted determines who benefits.

Many early large-scale EV incentive programs are centred on electric passenger cars. Because car ownership and new-vehicle purchases are concentrated among higher-income households, these policies have often directed more public support toward better-off consumers.

Some BRICS+ economies are taking a different approach by directing support toward motorcycles, scooters, auto-rickshaws, buses, and shared transport — modes widely used by lower- and middle-income people. Governments do this by lowering vehicle costs, setting income or vehicle-price limits, supporting commercial and public transport, and sometimes requiring new vehicles in selected categories to shift to electric. EV policy can therefore support energy security and cleaner transport while extending benefits to a broader section of the population.

International Institute for Sustainable Development (IISD)