EV Manufacturing Infrastructure In India

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In order to turn to sustainable alternatives and less energy consuming solutions, the global automotive industry is experiencing a paradigm shift right now. India, too, is investing in the transition to electric mobility. India’s recent policies to accelerate the transition to e-mobility are motivated by the pressure of oil imports, increasing carbon emissions, and international commitments to fight global climate change. Just as the two sides of the coin, the introduction of e-mobility in the state comes bearing not just various benefits but challenges too.  

Current scenario 

Regardless of the country’s lofty goals, India’s electric vehicle industry is still in its infancy. However, when viewed from a different perspective, India represents the world’s largest untapped market, especially in the two-wheeler segment. Under the automatic path, 100% foreign direct investment is permitted in this market. Leading players such as OLA Electric Mobility, Ather Energy, and Mahindra Electrics are rapidly expanding their market presence in response to this opportunity. Furthermore, states such as Karnataka and Tamil Nadu are enacting creative and timely investor-friendly policies in addition to constructing the required infrastructure. 

Tesla Inc., a leading American electric vehicle and clean energy corporation, recently established its presence in India by forming Tesla India Motors and Energy Pvt Ltd in Bengaluru. Positive developments have also been made in the expansion of charging infrastructure across the country, with states such as Andhra Pradesh, Uttar Pradesh, Bihar, and Telangana setting ambitious goals for the implementation of public charging infrastructure to boost electric vehicle adoption.

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Developing electric vehicles for India’s drivers and riders would be futile unless the country has access to charging facilities. Creating public charging infrastructure necessitates a thorough examination of the vehicle segments that will be served. It is also critical to control the charging station operation model. Their infrastructure entails upgrading electricity grids and confirming that electricity is generated using renewable energy sources. 

According to a recent survey done by Bloomberg New Energy Finance, India has just over 350 public EV chargers compared to about 57,000 petrol pumps. This makes up for one of the major challenges that India needs to find a long-term, sustainable solution to. In order to address this problem, one prospective solution is that the Indian government would have to consider removing the limit on electricity sales by distributors while also providing subsidies to commercial operators.


Today, electric vehicles are one of India’s most promising prospects. This is particularly valid now that business in this sector appears to be booming. The federal think tank Niti Aayog published a study titled “India’s Electric Mobility Transformation” in April 2019, estimating that by 2030, EV sales penetration in India will be 70% for commercial vehicles, 30% for private vehicles, 40% for buses, and 80% for two- and three-wheelers. Shifting modes of transportation can open up new business opportunities. These will appear in areas such as infrastructure charging and swapping, operation, and integrated transportation. Energy companies have joined the mobility industry in India, while some conventional power companies are looking into charging infrastructure and infrastructure companies are looking into the battery market. Nonetheless, while the electric vehicle industry is expanding, it still has a long way to go to meet the government’s ambitious 2030 goal. The pandemic of COVID-19 not only hampered the industry’s growth, but it also dampened overall consumer demand.

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Future Potential 

India’s automotive future looks electric! In favour of the same, 27 states and union territories have developed mobility transformation strategies to provide their people with safe, inclusive, cost-effective, and environmentally friendly transportation options. For the same, various states have started to come up with their very own incentives and policies to boost the growth and development of electric mobility. Moreover, the Indian government is also trying to make sure that a larger population of India gets to witness and experience the various benefits offered by electric vehicles. With this, it is absolutely sure that with the introduction of electric mobility in the country it has a lot of potential and will be used widely. 


Finally, the availability of capital for original equipment manufacturers, battery manufacturers, and charge point operators, as well as developments in infrastructure and a diverse range of consumer choices, will determine the size of India’s EV market. India is evolving, and with the introduction of a slew of new technologies and developments in the electric vehicle sector, a slew of new opportunities are opening up!

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