New Delhi
The Indian government is actively promoting electric vehicle (EV) production and local supply chains, aiming for 30% EV penetration by 2030. A report on Wednesday reveals that Tata and JSW groups are set to invest over $30 billion in EVs and related materials over the next decade, with approximately $10 billion allocated to South and Southeast Asia.
India’s large population presents significant market potential for EV investments. The adoption of EVs is expected to grow as new models are launched at competitive prices, alongside improvements in charging infrastructure. The report suggests that hybrid and compressed natural gas vehicles will also gain market share alongside EVs in the light-vehicle and passenger commercial segments.
To support this transition, the government recently introduced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, which has a financial outlay of ₹10,900 crore over two years. This initiative aims to accelerate EV adoption and develop essential charging infrastructure, contributing to a cleaner future.
The report emphasizes that India’s shift from internal combustion engines (ICE) will initially focus on alternative fuels rather than pure electric solutions. Government policies regarding imports and foreign investments will be crucial in facilitating this transition.
Hyundai Motor Co. and Kia see India as increasingly important, accounting for about 12% of their global sales volume in 2023. Hyundai plans to invest further in local EV production, launching its first fully electric model made in India in January 2025.
