As the world races toward a more sustainable future, India is emerging as a compelling contender in the electric vehicle (EV) manufacturing landscape. With the Indian government’s ambitious “Make in India” initiative, the country is poised to become a formidable player in the global EV market and potentially an export hub. Despite being in the early stages, the Indian EV industry has exhibited remarkable growth potential, setting the stage for a green revolution. 

EV Adoption Success  

India has been late to the party but quick on the dance floor. In recent years, India has witnessed an exponential increase in EV sales, and what’s truly remarkable is the inclusive nature of this transition, spanning vehicle segments, product types, and body styles. From e-bikes, e-rickshaws, and electric cars to electric light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and buses, the demand for EVs has witnessed a substantial upswing, capturing the interest of both commercial enterprises and individual consumers alike. In 2022, more than one million EVs were sold, marking a staggering 200% growth compared to the previous year. This growth is attributed to a combination of favorable government policies, incentive schemes, and increasing environmental consciousness among consumers and businesses. 

Government-Driven Growth 

The Indian government’s commitment to reducing carbon emissions and combating climate change is a driving force behind the rapid adoption of EVs. India’s push for 30% of all cars to be electric by 2030 is a testament to this commitment. With some of the world’s most polluted cities, India recognizes the urgent need to transition to cleaner, more sustainable transportation options. 

Incentives and Initiatives 

To boost local EV production and encourage exports, the government has introduced several initiatives. Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme, which boasts a budgetary allocation of approximately $1.3 billion. This scheme, spanning five years from April 1, 2019, aims to encourage the integration of hybrid and electric technologies in the transportation sector. Its overarching goals are to reduce the nation’s reliance on fossil fuels and combat vehicular emissions. In addition, there’s the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component industry, allocated a budget of approximately $3.5 billion, which provides financial incentives to bolster domestic manufacturing of advanced automotive technology products, including electric vehicles and their components. Furthermore, the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) manufacturing, with an impressive budget of around $2.4 billion, incentivizes the establishment of Giga-scale ACC manufacturing facilities in India, with a capacity of 50 Giga Watt hours (GWh). These ACCs are crucial components in batteries, promoting the widespread adoption of electric vehicles across the country. 

Challenges and Solutions 

While the EV industry in India is on an upward trajectory, it still faces challenges. One major obstacle is the lack of charging infrastructure, with only around 1,800 operational public charging stations as of 2021. However, the government plans to deploy 69,000 public charging stations across the country, making EVs more accessible and convenient. 

The Two-Wheeler Advantage 

Notably, two-wheelers accounted for 63% of EV sales in India in 2022, followed by three-wheelers at 32%. The popularity of electric two-wheelers is partly due to their lower charging requirements and cost-effectiveness, mitigating some of the challenges related to charging infrastructure. 

Electric Vehicle Manufacturers – A Growing List 

The list of electric vehicle manufacturers in India continues to grow, reflecting the industry’s dynamic nature. Established players and new entrants are diversifying the market and driving innovation. India’s homegrown electric vehicle manufacturers, such as Mahindra Electric, have been joined by new electric car companies like Ola Electric and Ather Energy, all contributing to the country’s EV manufacturing landscape. 

Global Interest and Investment 

India’s potential as an EV manufacturing and export hub has garnered interest from global and local auto manufacturers. Established electric car companies like TATA Motors, and Hyundai, alongside newer entrants and startups, have embraced the Indian EV market. Taiwanese contract manufacturer Foxconn has also announced plans to set up a production line for two-wheeler EVs in India. 

Electric Car Battery Manufacturers and Beyond 

As India gears up to become a significant player in the global EV market, it is not only attracting electric car manufacturers but also electric car battery manufacturers. The nation’s focus on local production of batteries and other critical EV components is strengthening the ecosystem. 

Electric Vehicle Manufacturers – A Growing List 

The list of electric vehicle manufacturers in India continues to grow, reflecting the industry’s dynamic nature. Established players and new entrants are diversifying the market and driving innovation. India’s homegrown electric vehicle manufacturers, such as Mahindra Electric, have been joined by new electric car companies like Ola Electric and Ather Energy, all contributing to the country’s EV manufacturing landscape. 

A Bright Future Ahead 

India’s ascent as an alternative EV manufacturing and export hub is not only promising but inevitable. With its proactive government policies, growing domestic market, and commitment to sustainability, India is on the cusp of leading the green revolution in the global EV industry. As we look to a future of cleaner, more sustainable transportation, India’s role as a key player and export hub cannot be overstated. India has the potential not only to meet its domestic EV needs but also to contribute significantly to the global transition towards eco-friendly mobility. As the world seeks alternatives to China in EV manufacturing, India is poised to rise as the viable and vibrant choice, fostering a greener tomorrow for all. 

Zoglix – A Moglix company has been working with suppliers/manufacturers in India to solve supply chain challenges of the world. Get in touch with us to know more about suppliers in aligned to us in EV manufacturing space.