Tag: EV Market

  • Before Its Initial EV Rollout, Maruti Plans 25,000 Charging Points

    In preparation for the introduction of its first electric vehicle, a midsize SUV known as Concept eVX, which is scheduled to take place in January 2025, Maruti Suzuki India intends to install close to 25,000 electric vehicle charging stations. Aside from utilizing its more than 5,100 service centers located in 2,300 cities, the leading automobile manufacturer in the country is also in discussions with oil marketing companies (OMCs) and energy companies to establish a charging ecosystem.

    Through their combined efforts, Indian Oil, Bharat Petroleum, and Hindustan Petroleum operate more than 81,000 retail stores across the nation, thereby controlling approximately 90 percent of the retail market!

    It has been reported in the media that Maruti has begun conducting a study of their dealer workshops in search of charging points. Each of its service centers is going to be equipped with at least one dedicated bay and two charging stations, according to the plan. Training for service mechanics has already begun in Bengaluru.

    How Maruti Is Planning to Execute Its Plan

    Through their combined efforts, Indian Oil, Bharat Petroleum, and Hindustan Petroleum operate more than 81,000 retail stores across the nation, thereby controlling approximately 90 percent of the retail market!

    Hisashi Takeuchi, the managing director of Maruti Suzuki, stated this week at the 64th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi that the company will develop a variety of solutions for its electric vehicle (EV) clients in order to lessen their concerns around the ownership of an EV. According to what he said, company would make use of the power of its network in order build confidence in its clients regarding their after-sale support.

    Maruti intends to sell 3,000 units of the eVX within the first three months of its launch, with the cost of the vehicle being estimated to be between INR 20-25 lakh. The electric sport utility vehicle (e-SUV) will be manufactured at the company’s plant in Gujarat. Maruti intends to launch a total of six to seven electric vehicles over the following six to seven years.

    Is It the Right Time to Enter in EV Domain?

    Maruti is currently entering the segment at a time when sales in India’s emerging electric vehicle market have reached an eight-month low. According to data obtained from the Vahan portal of the government, electric vehicle sales in August were 6,335 units, representing a year-on-year decrease of 10%. The reduction can be attributed to a number of causes, including problems with the charging infrastructure, concerns about range, and high starting pricing.

    It is not uncommon for automobile manufacturers to get their ecosystem ready before the launch of their first electric vehicle (EV), and then to continue growing it through collaborations with a variety of stakeholders.

    Tata Motors, the market leader in electric vehicles (EVs), distributes five different models of electric vehicles and has established 5,600 public charging points. Meanwhile, Tata Power Renewable Energy, the business’ sister company, constructed 101,924 residential charging connections.


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  • Tesla’s Arrival: Powering India’s Electric Vehicle Revolution

    With India’s expanding population and steadfast commitment to sustainability, Tesla, a prominent global player in the electric vehicle industry, perceives a promising opportunity for growth.

    India’s intensified efforts to reduce carbon emissions and promote clean energy have led to a concerted focus on attracting foreign investments, particularly in the electric vehicle sector.

    In a significant development, India has recently approved a scheme aimed at positioning the country as a leading manufacturing hub for cutting-edge electric vehicles. This strategic policy shift is designed to entice major players like Tesla to invest in India’s thriving electric vehicle (EV) market.

    With these favorable policy reforms in effect, US-based Tesla is preparing to establish its presence in India. The government’s persistent advocacy for electric mobility, combined with the escalating demand for EVs, renders India an exceptionally appealing prospect for Tesla’s entry.

    Tesla, Inc. is a prominent American multinational corporation based in Austin, Texas. The company specializes in the design, production, and distribution of electric vehicles, as well as a range of clean energy products.

    Tesla’s Visit to India and Site Selection Process
    Potential Economic Impact of Tesla’s Manufacturing Plant
    Excitement Among Tesla Fans in India
    Benefits of Tesla’s Presence in India
    Challenges and Potential Hurdles for Tesla’s Expansion
    Government Aid and Incentives for EV Manufacturers
    Competitors and the Electric Vehicle Market in India

    Tesla’s Visit to India and Site Selection Process

    After years of anticipation, a team from Tesla is finally making its way to India this month. 

    According to reports, Elon Musk, CEO of Tesla and SpaceX, is set to visit India during the week starting April 22, marking a significant milestone in the company’s growth strategy.

    Musk is scheduled to meet with Prime Minister Narendra Modi and potentially unveil the company’s investment strategies in the country, as per reports.

    Last June, during Prime Minister Modi’s visit to the US, Musk met the PM and disclosed his intention to visit India in 2024. He expressed confidence that Tesla would soon venture into the Indian market.

    The team will be scouting potential sites for a car manufacturing plant, carefully considering the states of Telangana, Gujarat, Maharashtra, and Tamil Nadu as potential locations.

    An email query sent to Tesla to confirm Musk’s visit and the company’s India investment plans remained unanswered.

    The site selection process is of paramount importance, as it will determine the efficiency and productivity of Tesla’s operations in India.

    India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India, Musk had said in a X Spaces session with Nicolai Tangen, the Chief Executive Officer at Norges Bank Investment Management.

    Factors such as infrastructure, availability of skilled labor, proximity to suppliers, and logistical advantages will play a significant role in the decision-making process. Tesla’s meticulous approach to site selection ensures that the chosen location will support its commitment to innovation and sustainability.


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    Potential Economic Impact of Tesla’s Manufacturing Plant

    Tesla’s potential investment of USD 2-3 billion in establishing a manufacturing plant in India speaks volumes about the company’s confidence in the Indian market. 

    Apart from creating job opportunities, this investment will have a profound economic impact on the chosen state. The establishment of a Tesla manufacturing plant will attract further investments, boost local businesses, and contribute to the overall growth of the region.

    “I want investment to come in India because in India, it doesn’t matter who has invested money, (but) the sweat put into the work must be of our own people. The product should have the essence of our soil, so that our youth in the country will get employment opportunities,” said PM Modi in an interview to ANI, to a query on Elon Musk’s Tesla and Starlink’s possible entry into India.

    Additionally, the presence of Tesla in India will lead to the development of a robust EV ecosystem. This will foster innovation, encourage the growth of related industries, and position India as a global player in the electric vehicle manufacturing sector. The economic benefits of Tesla’s investment extend beyond the company itself, creating a ripple effect that will positively impact the nation’s economy.

    Excitement Among Tesla Fans in India

    Tesla’s entry into the Indian market has been a long-awaited moment for EV enthusiasts and fans across the country. The news of Tesla’s visit and its exploration of potential manufacturing sites has sparked excitement and anticipation among the Indian population. 

    The promise of owning a Tesla electric vehicle, known for its cutting-edge technology and sleek design, has fueled the enthusiasm of fans who have eagerly awaited the company’s arrival.

    Social media platforms have been abuzz with discussions and speculations about Tesla’s future in India. Fans have been actively sharing their excitement, expressing their desire to be a part of the Tesla community, and eagerly awaiting the official launch of Tesla’s operations in the country. 


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    Benefits of Tesla’s Presence in India

    Tesla’s presence in India will bring forth a multitude of benefits for both the company and the nation. 

    Firstly, it will provide Indian consumers with access to Tesla’s advanced electric vehicles, renowned for their performance, range, and cutting-edge technology. This will contribute to the acceleration of electric vehicle adoption in the country, reducing dependence on fossil fuels and lowering carbon emissions.

    Moreover, Tesla’s manufacturing plant in India will create job opportunities for the local workforce. The employment generated by the plant will not only benefit the individuals directly employed by Tesla but also support ancillary industries, thereby boosting the overall employment scenario in the region.

    Additionally, Tesla’s entry will attract global attention and investment in India’s EV sector. It will encourage other international players to explore opportunities in the Indian market, fostering healthy competition and contributing to the growth and development of the electric vehicle industry as a whole.

    This (E-vehicle policy) will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment,”a government press release said.

    The EV policy mandates a minimum investment of Rs 4,150 crore (∼USD 500 million), with no maximum limit. Manufacturers must establish manufacturing facilities within 3 years, commence commercial production of e-vehicles, and achieve 50% domestic value addition (DVA) within 5 years. Localization levels of 25% by the 3rd year and 50% by the 5th year are required. A 15% customs duty applies to vehicles with a minimum CIF (Cost, Insurance, and Freight) value of USD 35,000 for 5 years, contingent upon setting up manufacturing in India within 3 years. A bank guarantee is required to support the investment commitment.

    Challenges and Potential Hurdles for Tesla’s Expansion

    While Tesla’s entry into the Indian market holds immense promise, there are certain challenges and potential hurdles that the company may face during its expansion. 

    One significant challenge is the establishment of a robust charging infrastructure across the country. To support the widespread adoption of electric vehicles, a dense network of charging stations is essential. Tesla will need to collaborate with the government and other stakeholders to ensure the availability of reliable and accessible charging infrastructure.

    Electric Vehicle per Charging Station in India as of January 2023, by Leading State
    Electric Vehicle per Charging Station in India as of January 2023, by Leading State

    EV charging stations supply in India will surge as the Indian Oil Corporation (IOC) and two other public sector oil firms have pledged to install 22,000 charging stations by 2026. The National Highways Authority of India (NHAI) has also announced plans to target having EV charging stations every 40 – 60 miles along the country’s highways. India has an active network of 934 active public charging stations.

    You can find the nearest EV charging station from your current location at:

    💡
    https://e-amrit.niti.gov.in/charging-station-locators

    Another potential hurdle for Tesla is the competitive landscape in India’s automotive market. Several domestic and international players have already established their presence, offering electric vehicles at various price points. 

    Tesla will need to differentiate itself and position its products strategically to capture a significant market share.

    Furthermore, regulatory frameworks, import duties, and taxation policies may impact Tesla’s pricing and affordability in the Indian market. The company will need to navigate these complexities effectively to make its electric vehicles accessible to a wider range of Indian consumers.

    Government Aid and Incentives for EV Manufacturers

    The Indian government has been actively promoting electric mobility through various initiatives and incentives. 

    In line with the country’s commitment to sustainable development, the government has introduced favorable policies and frameworks to encourage the adoption of electric vehicles.

    Under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, the government provides financial incentives to both manufacturers and buyers of electric vehicles. These incentives aim to reduce the upfront cost of EVs, making them more affordable and attractive to consumers. Tesla can leverage these incentives to make its electric vehicles more accessible to Indian buyers.

    Additionally, the government has set ambitious targets for electric vehicle adoption, with a goal to have only electric vehicles on Indian roads by 2030.

    This commitment sends a clear signal of support to EV manufacturers, including Tesla, and creates an environment conducive to their growth and success in the Indian market.

    Competitors and the Electric Vehicle Market in India

    Tesla will be entering a competitive landscape in the Indian electric vehicle market. Several domestic and international players have already established their presence and are actively catering to the growing demand for electric vehicles.

    Mahindra Electric, the electric vehicle division of Mahindra & Mahindra, is one of the leading domestic players in the Indian market. The company offers a range of electric vehicles, including cars and commercial vehicles, and has established a strong network of dealerships and service centers across the country.

    Players such as Hyundai, Tata Motors, and MG Motor have also made significant strides in the Indian electric vehicle market. These companies have introduced electric vehicles with competitive pricing, attractive features, and extensive service networks, catering to the diverse needs of Indian consumers.

    Tata Punch EV, MG Comet EV, and Tata Nexon EV are among the top three popular electric cars in India.

    Tesla’s entry into the Indian market will bring a fresh perspective and introduce its iconic brand to the Indian population. The competition will encourage innovation, drive technological advancements, and ultimately benefit consumers by offering a wider range of electric vehicle options.

    Conclusion – The Future of Tesla and Its Impact

    Tesla’s long-awaited entry into the Indian market holds immense promise for the future of sustainable transportation in the country. With its advanced technology, sleek design, and commitment to reducing carbon emissions, Tesla’s electric vehicles are expected to find a receptive market in India.

    The establishment of a manufacturing plant in India will not only create job opportunities and boost the economy but also contribute to the growth and development of the Indian electric vehicle industry. Tesla’s presence will catalyze the adoption of electric vehicles, encourage competition, and drive innovation in the sector.

    As Tesla’s team visits India to explore potential manufacturing sites, the expectations and excitement among fans and enthusiasts are at an all-time high. The Indian government’s support, incentives, and commitment to electric mobility further solidify India’s position as a key market for Tesla.

    With its unparalleled brand value, cutting-edge technology, and commitment to sustainability, Tesla is poised to make a significant impact on the Indian electric vehicle industry. The future looks bright as Tesla’s entry into India paves the way for a greener and more sustainable transportation landscape.

    FAQs

    What is Tesla?

    Tesla is an American electric vehicle (EV) and clean energy company known for its electric cars, renewable energy products, and energy storage solutions.

    How does Tesla approach innovation?

    Tesla is known for its innovative approach to technology and design, constantly pushing the boundaries of electric vehicles and renewable energy technology to make sustainable solutions more accessible and appealing.

    Why is Tesla interested in India?

    India presents a significant opportunity for Tesla due to its growing population, increasing focus on sustainability, and government initiatives to promote electric mobility and renewable energy.

    What recent developments indicate Tesla’s focus on India?

    Tesla’s CEO Elon Musk has expressed interest in entering the Indian market, and the company is reportedly exploring opportunities for manufacturing and investment in the country.

  • Battery Reuse, Funding, and Skilling Among Areas That Could Steer India’s EV Growth

    After a trailblazing performance in 2023, India’s electric mobility is set to be the hero performer yet again in 2024, even amid global slowdown worries and job cuts. However, the rush for EV vehicles has thrown open a new set of challenges for the sector. EV companies, component manufacturers, and researchers that StartupTalky spoke with list out some of the roadblocks that lay ahead.

    Charging Infrastructure
    Sourcing and Recycling of EV Batteries
    Trucking Industry
    Funding
    Attracting a Talent Pool

    Charging Infrastructure

    While India’s EV makers have been experiencing roaring sales, the shortage of EV charging infrastructure is not only creating a gap for easier mobility but also stopping several potential EV owners. Be it non-functional charging stations or cars running out of charge and coming to a standstill, addressing EV charging issues has become detrimental to the further growth of the sector.

    “The Indian government’s ambitious plans, coupled with private sector participation, are accelerating the deployment of charging infrastructure, thereby addressing one of the key challenges in EV adoption,” said Rohan Shravan, founder and CEO of Tresa Motors.

    In July 2023, the Confederation of Indian Industries called for a dire need to increase the number of charging stations to meet the demand for transitioning to electrification of vehicles in the coming years. This would eventually lead to 1.32 million charging stations by 2030, the report said.

    “At present, about 40% of total installed capacity in India is renewable energy based. On the other hand, the grid infrastructure is aging, and the power demand from electric vehicles has already started straining the grid,” said Akanksha Goluchha, lead – clean energy and e-mobility at the National Resource Defense Council’s India branch.

    NRDC is a cohort of leading online activists, scientists, lawyers, and other environmental specialists to help the world confront the climate crisis.

    “Intelligent charging solutions that include smart grids, smart meters, smart charging systems, wireless sensors, etc. can help schedule EV charging based on periods of high renewable energy generation,” Goluchha added.

    The government-initiated National Highways for Electric Vehicles plans to electrify 5,500 kilometers of existing highways across 23 cities and 12 states.

    India Electric Vehicle Market Size, 2022 to 2032
    India Electric Vehicle Market Size, 2022 to 2032

    Sourcing and Recycling of EV Batteries

    EVs rely primarily on lithium-ion batteries, which contain specific metals and minerals. As of now, India sources most of the EV battery components from China, which in turn makes it costlier by the time the EV hits the showroom.

    To reduce India’s reliance on imports amid rising demand for EVs, Finance Minister Nirmala Seetharaman in her 2023–24 Union Budget exempted customs duty on capital goods and machinery needed to manufacture lithium-ion cells locally.

    “Indian-manufactured cells are expected to be launched in 2024, this development will help reduce the cost of batteries, creating opportunities for unit profitability and, subsequently, price reductions for consumers,” said Sumeru Shah, Business Head, EV Two-Wheeler at Ecofy.

    However, to make optimum use of the minerals stashed inside the batteries, India also needs better management of the retired battery cells.

    “How do you dispose of these batteries when they’re consumed in volumes like today? Today, we’ve got all these cars being crushed, and the metal from cars being reused. So there’s a lot of sustainability that happens today. But with electric vehicles, that’s still a challenge. How do you dispose of the batteries? The batteries that we use for our torches, our cell phones… how do we sort of dispose of them in a manner that it’s sustainable and doesn’t damage Mother Earth?,” said Anil Kempanna, Chief Executive Officer at Cientra, which offers solutions across semiconductors, embedded software, automotive, and telecom sectors. 

    Co-founder of electric bicycle company E Motorad, Sumedh Battewar, points to recycling batteries as an effective way to source battery components.

    “The key solution to this is recycling and reuse. Today, this chain is broken. Today, even if a cell is short, I have no use for it; I have to throw it out. I believe that, with time, an ecosystem will get built up. Because this (recycling of batteries) has a lot of value where a business can be built,” Battewar said.


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    Trucking Industry

    For India to successfully transition to clean mobility, trucks, and vehicles will play a key role in the transport electrification revolution.

    “Almost 90% of our emissions from the transport sector come from road transport. And if you zoom down to the road transport sector as well, almost 10–15% is coming from trucks. So trucks have a direct relationship, so we have to look into these kinds of aspects to assess how we are going to decarbonize the sector as a whole,” said Narayankumar Sreekumar, Associate Director at Shakti Sustainable Energy Foundation.

    In September 2022, India’s think tank, NITI Aayog, along with RMI, released a report – ‘Transforming Trucking in India’. The joint report pegged India’s trucks to more than quadruple, from 4 million in 2022 to roughly 17 million trucks by 2050.

    Among a host of measures suggested by the report, one of them involved moving towards zero-emission trucks.

    “Zero-emissions trucks (ZETs), including battery electric trucks (BETs) and fuel cell electric trucks (FCETs), offer a compelling alternative to the diesel trucks that dominate India’s road freight today. ZETs do not have tailpipe emissions and have lower operating costs, presenting an opportunity for India to showcase how the adoption of ZETs is economically efficient and better for air quality, public health, and the environment,” the report said.

    Funding

    Being a capital-intensive sector, any funds flowing into EV companies can come as a reprieve. 

    “In the coming year, 2024, we eagerly seek funding partners to propel our innovations to the next stage, marking another chapter in our journey towards revolutionary advancements,” said Bharath Anantha Srinivas, the CEO of Technovos Machinery Private Limited, a provider of sustainable commercial materials movement equipment.

    It’s no surprise, then, that EV sector investments are on the rise.

    Perpetuity Capital, a fintech company offering loans to EVs, and Mufin Green Finance plan to invest in 1,000 EV companies in India this financial year.

    According to media reports, EV funding in 2023 reached a record of $169.4 million, up 79% year over year. However, for a sector that is touted to grow at a rapid pace, funding requirements also need to be commensurate.

    “Going forward, India needs significant investor support to realize the $100+ billion EV opportunity. As the landscape evolves, investors need to evaluate potential assets based on five criteria: sustainable competitive advantage, GTM and distribution capabilities, customer feedback and brand perception, talent and culture, and manufacturing and supply chain strategy,” said a report by Bain & Company.

    Attracting a Talent Pool

    Skilling talent to meet the rising demand from the EV segment poses the next big challenge for the sector.

    Speaking at the EV Expo in December, Minister of Road Transport and Highways Nitin Gadkari said India is likely to see over five crore jobs in the EV sector by the end of this decade.

    A report by staffing and HR solutions company Adecco showed that, among other sectors, the EV segment has been hiring the fastest in the last five years.

    “Upskilling and reskilling will be crucial for the electric vehicle (EV) industry. Our initial efforts are primarily focused on upskilling rather than skilling new people, where we are interacting with numerous academic institutions, colleges, and polytechnics. They have requested our assistance in terms of helping them upgrade the curriculum and plug in the credentials and National Occupational Standards (NOS),” Arindam Lahiri, CEO of the Automotive Skills Development Council (ASDC), said in an interview with the National Skills Network.

    Conclusion 

    While the EV segment is all set to be the showstopper in this decade, easing some of the challenges, such as recycling batteries, smoothening infrastructure roadblocks, funding the sector, and upskilling talent, could ensure that India’s sustainable mobility sector turns into a force to reckon with.


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  • EV Investments Up, But Hopes Pinned on Govt Policy Push

    Everyone is salivating at the electric vehicle market pie in India! If the recent spate of investments is anything to go by, the EV segment is touted to be among the leading hero sectors driving India’s growth. However, stakeholders seek clarity and concrete policy initiatives from the government to make further inroads into the segment.

    “Several factors contribute to the increasing investments in India’s electric vehicle (EV) segment. India boasts the world’s largest untapped market, particularly in the two-wheeler sector, presenting an enticing investment opportunity. Growing demand, driven by a young and affluent population eager to embrace new technologies, further fuels investment interest,” said Arindam Lahiri, chief executive officer of the Automotive Skills Development Council.

    The 2022–23 Economic Survey tabled in Parliament in December last year had pegged EV sales at 1 crore and 5 crore jobs in the sector by 2030. Leading think-tank, the Centre for Energy Finance, expects India’s EV market to be $206 billion by 2030.

    There is no denying that demand for EVs has been on the rise. According to the Ministry of Road Transport and Highways, electric vehicle purchases spiked by 51% year over year to 740,000 in April–September. This number is expected to cross a record of 1.5 million during the entire fiscal year.

    StartupTalky takes a closer look at this demand, the reasons behind the rise in investments, and the roadblocks that need to be addressed.

    India Electric Vehicle Market Size, 2022 to 2032

    Investments Galore
    Harsh Ground Reality

    Investments Galore

    If the recent spate of investments is anything to go by, the EV market has piqued the interest of investors, both in India and abroad.

    Earlier this week, Paytm Chief Executive Officer and Co-Founder Vijay Shekhar Sharma launched a ₹30 crore fund to solely invest in EV and artificial intelligence startups.

    Earlier this week, electric vehicle and appliance manufacturer–Wardwizard Innovations & Mobility said it would invest ₹2,000 crore for the development of an electric vehicle ancillary cluster in Gujarat. Other states are not too far behind. Karnataka is said to have received investments worth ₹25,000 crore so far in the EV and ancillary space, newspaper reports quoted a state minister as saying.

    Earlier this year, British energy giant BP invested in EV delivery company Magenta and BluSmart Mobility, an EV-only ride-hailing company. Last year, global energy giant Shell backed the fund-raising exercise of Gurugram-based EV charging network company Statiq.

    One of the reasons for this frenetic activity in the EV segment is because of the huge potential that India holds. S&P Global Ratings has pegged India’s EV penetration at 1.1%, a far cry from the 17.3% average in Asian countries.


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    Harsh Ground Reality

    Despite the investments in the EV and clean technology sectors, there is still a long way to go for demand to remain persistent, say venture capitalists and companies that StartupTalky spoke with. According to them, some key areas that need to be addressed in the EV segment include:

    Charging Infrastructure

    According to a report released by the Confederation of Indian Industries in June this year, India may need 1.32 million charging stations by 2030 to meet the government’s ambitious sustainability targets. As of January 2023, there were 5,254 charging stations in the country, as per data disclosed in the Lok Sabha by Union Minister RK Singh.

    “India’s growing EV market penetration and battery development ambitions also introduce new barriers, including supply-chain worries related to the price and availability of semiconductors, metals and minerals, and battery cells, as well as concerns about insufficient charging infrastructure and electricity grid readiness,” a report by the International Institute of Sustainable Development said in August 2022.

    Some state governments, such as Uttar Pradesh, have already started work on installing charging stations along five main express highways in the state.

    Empowering Local Manufacturing & Research

    Apart from improving infrastructure, incentives also need to be provided to component manufacturers and for R&D (research and development), analysts and corporations.

    “In the last five to six years, funds have been going into battery manufacturing and battery technology companies, but that money is not there for the kind of R&D we need. It is slowly coming in. But the frugality with which Indians work is what we must leverage,” said Rohan Shravan, founding CEO of Tresa Motors, pointing to the higher cost of manufacturing.

    Imported lithium batteries in EVs constitute around 50–60% of the cost of EVs, making them much costlier.

    “The indigenous availability of the vehicles’ batteries and spare parts will also impact the consumer mindset and also the manufacturer’s mindset, as it will make it even cheaper for us to manufacture and sell,” said Kanchi Patel, director and co-founder of two-wheeler electric bike manufacturer Abzo Motors.

    Co-founder of angel investing firm The Startup Capital–Aditya S. Kapur, however, feels looking out for newer innovative technology and incubating these ideas at home is far more important than just manufacturing.

    “Our main concern is not to run our car on electricity. Our real problem statement is that we want a non-polluting automobile. We cannot call a car running on electricity completely clean. The whole process of innovation is completely linked to exploring. We need to give time to the stakeholders and allow them to explore things,” Kapur said.

    Policy Push

    Companies and investors are now looking to the government for easier policy regulations.

    In 2015 and subsequently, in 2019, the government launched the Fast Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India. Under this initiative, buyers of EVs were incentivized by an upfront reduction in costs. However, owing to reports of malpractice, the government tweaked this initiative and reduced these incentives.

    At present, the Department for Promotion of Industry and Internal Trade (DPIIT) is said to be working on a scheme to extend subsidiaries to electric four-wheeler makers based on the investments they make to manufacture locally, The Economic Times reported earlier this week.

    Many stakeholders are also wary of putting their fingers into the EV pie as they are waiting for more concrete steps from the government.

    “Till infrastructure is in place, heavy vehicles or large commercial vehicles are only bidding time, said Manas Pal, co-founder of Pedal Start, a Gurugram-based accelerator. He added, “The supporting component of this sector will play a very important role. Something on the charging stations, something on the battery development side, something on the battery manufacturing side, something on the battery recycling side, something on providing doles to people buying these commercial vehicles, something on the loan side will impact a lot,” Pal said.

    Conclusion

    The road to a pollution-free commute may seem like a long one, but at least the right noises have been initiated by stakeholders, including the government and investors. It, however, remains to be seen if India manages to hit a sweet spot in the EV sector. For now, this can be possible only with a concrete roadmap from the government, persistent corporate investments, and an ingenious sustainability model from think tanks.