South and South East Asia will spend more than USD 20 billion in building electric vehicles in the next few years, says a latest report by S&P Global Ratings. According to the report, India's vast market potential is already attracting substantial EV-related investment which will increase going ahead.

"We estimate that the Tata and JSW groups alone will be investing over USD 30 billion into making EVs and EV materials over the coming decade, of which about USD 10 billion will be in South & South East Asia," said the report.

EV adoption in India will progress with model launches that bring prices more in line with ICE models and with improving charging infrastructure. The S&P estimates see hybrids and vehicles powered by compressed natural gas commanding "meaningful market share" alongside EVs in the light-vehicle and passenger commercial vehicle segments. "The transition from ICE in India will initially be more about a shift to alternate fuels rather than pure electrification," said the report.

Government policies on imports and foreign investment will continue to play a critical role in India's vehicle electrification but the country will "remain dependent on imports such as batteries to meet its EV production targets over the next three years, at least," it said.