The Rising Global Interest In India's EV Opportunity While Tesla sought a reduction in import duties for its EVs in 2021, international tech firms and automotive giants are entering the Indian market
By S Shanthi •
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The increasing momentum in the adoption of electric vehicles (EVs) in India, as a result of interest shown by OEMs, startups, government and consumers, has made international tech firms and automotive giants look at India as the next big market.
A case in point is Tesla's interest in India's EV market. Tesla CEO Elon Musk will reportedly be meeting Commerce and Industry Minister Piyush Goyal in the US soon to have discussions about the company's plans to establish a factory in India, reported Reuters.
To quote a few examples, tech giant Acer recently made an entry into the Indian EV market by licensing its brand to mobility startup eBikeGo. During an e-mobility expo recently, Acer unveiled its e-scooter model, the MUVI-125-4G, the first EV model released under the Acer brand for the Indian market.
Musk also met Prime Minister Narendra Modi earlier this year to express his interest in investing significantly in the country. Tesla aims to manufacture a $24,000 car and source more components from the country and wants to set up charging infrastructures across the country.
Another example to quote here is Vietnam's electric car manufacturer, VinFast Auto, revealing its plans to invest $200 million in setting up assembly units in both India and Indonesia. With this move, the company plans to tap into the expanding Indian market. Automotive giant Mercedes-Benz is also focusing on capturing the luxury EV market.
Further, India is planning to draft a new policy to attract electric vehicle (EV) manufacturers and encourage greater investment in the sector. Commerce Minister Piyush Goyal was quoted as saying the same by Reuters last month. Another report by Reuters, published a month before this one, also mentioned that India was working on an EV policy that would cut import taxes for automakers that committed to some local manufacturing, citing sources with direct knowledge of the matter.
"The forthcoming EV policy in India holds tremendous potential to shape the future of the electric vehicle industry in the country. To ensure its success and foster a conducive environment for growth, there are several key elements that should be considered," said Sameer Aggarwal, CEO and founder, Revfin, in an earlier interview.
Indian states have also come up with their EV policies. So far, 21 Indian states have drafted their own EV policies to give a boost to EVs in their respective states. Overall, electric mobility has experienced significant growth in the last few years, driven by improved charging infrastructure, increased awareness about sustainability, an increase in oil prices, technological advancements, innovations by startups, OEMs' participation, and government incentives and policies, among others. And, international interest is another feather to India's EV cap.
