India’s Electric Vehicles

Cost effective (TCO basis) for Fleet/ shared mobility market forecasted to grow at ~40% CAGR
13% reduction in CO2 emissions kicking in 2022 (CAFE norms)
Good Indigenous Resources of steel, copper, electrolyte, carbon can be used to develop capabilities
Greening of value chain and grid will significantly reduce the carbon foot-print of auto industry
xEVs being more technology driven, present a more level playing field
Growing investment Interest: $1.7 bn PE/VC/ green fund investment in 2021

Safety/ Reliability

Concerns regarding fires, Electronic malfunctions, Vehicle Servicing/ Repair and Vehicle/Component Life

xEVs have 53% higher upfront costs (component & developmental) which prevent TCO parity with ICE. There is lack of after-market impacts resale value & leads to limited/ costly retail finance (~2X rates) & with lower (50-75%) LTVs. Have higher insurance costs due to lack of historic performance data and the Inverted duty structure leads to receivables tie-up for component players.

Skillset/ Indigenous technology

There is limited skillset across value chain (cell chemistries/ power electronics, sensors) & production, servicing and lack of indigenous technology/ IPs.

Material/ Component Access

There is lack of raw material access for cells/ magnets/ semiconductors (xEVs require 2X ICs), leading to low Domestic Value Add


The chargers/battery available are with limited/no interoperability in India. Availability, clearances & cost issues for locations & upstream power infra and low & non-uniform grid load capacity are also major concerns and low utilization rates also impact business viability.


Indian xEV market is <2% share of global auto & auto component trade. We have Low indigenous capability in xEV components (only 12% exports are electrical/electronic parts), limited know-how in aftermarket and cell chemistries/ power electronics/ sensors and limited Testing infrastructure for conformity to global standards

Challenges for Indian Electric Vehicle

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