EV Industry in India: How India accelerates towards becoming next powerhouse in EV production?

India aims to become a manufacturing hub for electric vehicles (EVs) under its 'Make in India' initiative. The government has announced initiatives such as FAME India and PLI schemes to drive local production.

Alka Jain
First Published29 Jun 2023
India aims to reach 17 million units by 2030.
India aims to reach 17 million units by 2030.

India, a rapidly growing economy, is on the verge of becoming a manufacturing hub for various sectors including the electric vehicles industry. The Government of India aims to achieve 100% local production of EVs under its ‘Make in India’ initiative. However, the Indian EV industry is still in the early stages with a quick growth plan. 

Some media reports stated that the electric vehicles market in India is expected to reach 17 million units by 2030, but the EVs sale was able to cross only the one-million mark last year. 

Hence, the Indian government has announced several initiatives like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India), the PLI scheme for the Auto and the Auto Component, and the PLI scheme for manufacturing of ACC to drive local production and achieve its goal by the mentioned time period. 

Taiwanese contract manufacturer Foxconn has recently announced its plan to set up a production line for two-wheeler EVs in India. 

Several brands including TATA Motors, Mahindra, Hyundai, Ola Electric, Ather Energy, Okinawa, TVS, MG, Hero Electric, and others have come up with the electric vehicle segment in the country. 

Gaurav Rathore, co-founder, Eveez said that global and local auto manufacturers have started investing heavily in the production of electric vehicles in India. 

“While phase II of FAME has earmarked 10k crore as incentives to customers, PLI has reserved around 26k crore for encouraging the automotive industry to start sourcing and producing vehicles locally in the country including EVs. All these efforts have come together and are now helping India to emerge as the primary hub for EV production around the globe,” Rathore told Livemint. 

Amit Raj Singh Founder and Managing Director, Gemopai believes that the encouraging policy framework offered to spur the local production of EVs is proving instrumental in attracting investments from all over the world.

“With such encompassing efforts in place, growth engines of EV production in India are humming and likely to achieve new milestones of success in the coming years.”

“The Indian government is committed to achieving 30% electrification of total mobility by 2030 and with the growing interest of the end users across the EV segments, both domestic and foreign manufacturers are setting up their production plants in India,” Singh added. 

India's journey towards becoming an EV powerhouse is underpinned by several key factors that highlight its undeniable potential, said Tushaar Bajaj, co-founder and director of Virtus Motors.

The country's commitment to reducing carbon emissions and combating climate change has been a driving force behind the rapid adoption of EVs, hence, it has created a conducive environment for the growth of the EV sector by offering various policies, Bajaj said. 

In addition, the country's focus on developing charging infrastructure and promoting renewable energy sources aligns with the requirements of a thriving EV ecosystem.

“The government has initiated projects to establish a network of charging stations across the country, making EVs more accessible and convenient for consumers. And, India's push for renewable energy generation, such as solar and wind power, ensures a sustainable and clean source of electricity for EV charging,” the Virtus Motors co-founder said. 

He further asserted that India's concerted efforts in promoting EVs, coupled with its manufacturing prowess, expanding market, and emphasis on charging infrastructure and renewable energy, position it as the next hub of EV production.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeNewsIndiaEV Industry in India: How India accelerates towards becoming next powerhouse in EV production?

Most Active Stocks

Bharat Electronics

03:37 AM | 14 JUN 2024
4.05 (1.35%)

Ambuja Cements

03:37 AM | 14 JUN 2024
25.65 (3.86%)

Tata Steel

03:37 AM | 14 JUN 2024
0.5 (0.27%)

Oil & Natural Gas Corporation

03:37 AM | 14 JUN 2024
0.15 (0.05%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Usha Martin

10:23 AM | 13 JUN 2024
36.25 (9.59%)

Aegis Logis

10:26 AM | 13 JUN 2024
73.15 (9.54%)

Elgi Equipments

09:59 AM | 13 JUN 2024
51.25 (8.49%)

Praj Industries

10:20 AM | 13 JUN 2024
51.55 (8.13%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K

    Fuel Price

    • Petrol
    • Diesel
    New Delhi
    HomeMarketsPremiumInstant LoanGet App