Why are emerging economies becoming key EV growth markets?

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Emerging Economies Drive Key EV Growth Due to Policy, Infrastructure, and Consumer Interest

Emerging economies are increasingly vital to the electric vehicle (EV) industry's growth trajectory. This shift is underpinned by expanding policy incentives, developing charging infrastructure, and a rise in consumer interest. Markets such as Vietnam, India, Australia, and South Korea have approximately doubled their EV sales in the first half of 2026 compared to the previous year, with over 90 countries globally experiencing year-on-year EV sales growth during this period.
Expanding Policy Incentives and Growing Infrastructure

Government support through policy incentives is a significant factor in boosting EV adoption in emerging markets. While specific details on these incentives are not elaborated, their expansion is cited as a key driver. Concurrently, the growth of charging infrastructure is also contributing to making EVs a more viable option for consumers in these regions.
Rising Consumer Interest and Demand

Consumer interest in electric vehicles is on the rise across emerging economies. This growing demand, coupled with supportive policies and infrastructure, is creating a fertile ground for EV sales. The International Energy Agency (IEA) projects that China and other emerging economies will collectively represent around 60% of global car demand in the coming decade, highlighting the strategic importance of these markets.
VinFast's Performance Reflects Market Trends

Automakers like VinFast are demonstrating this shift through their performance. In the second quarter of 2026, VinFast reported a 96% year-on-year increase in global EV deliveries, reaching 70,085 units. The company's two-wheel segment also saw substantial growth, with 286,039 electric scooters and e-bikes delivered, a 311% year-on-year rise. In July alone, VinFast exported over 5,000 vehicles, with shipments destined for markets including Europe, the Philippines, and Indonesia, underscoring the expanding international footprint of EV manufacturers.

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Why are emerging economies becoming key EV growth markets?

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