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Transformation of India’s EV Landscape with Key Government Initiatives

Industry experts predict that the country’s EV sales will increase and manufacturing costs will decrease as EV battery production increases in tandem with the “Make in India” push.

Liz Lee, Associate Director at Counterpoint Research, believes that there will be a big expansion in India’s EV market soon.

“Government initiatives are game changers,” according to Lee. Examples include the PLI scheme for Advanced Chemistry Cells (ACC) and the recent 15% reduction in import taxes on EVs under $35,000.

All of this not only gives Tesla more opportunities, but it also shows that India is prepared to accept large investments and create a new ecosystem for EVs and the companies that supply their parts.

“It is a blatant indication that India is moving closer to becoming a significant force in the global EV market,” Lee said.

The ecosystem for electric vehicles is still rather young.

Research Vice President Neil Shah stated, “Although the ecosystem for manufacturing conventional automobiles is mature, the building blocks for a robust ecosystem for manufacturing smart cars, from the battery to infotainment to sensors to full ADAS/ADS, beckon.”

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“This would include companies like Foxconn lowering barriers for new entrants to India with its innovative MIH consortium-based ‘localized’ design and manufacturing model, BlackBerry providing safety and security software, and companies like Qualcomm and MediaTek designing and offering advanced auto components,” Shah clarified.