Connect with us

EV updates

India’s New EV Policy: A Game Changer for the Passenger Vehicle Market and Auto Component Industry

Published

on

India’s automotive landscape is set for a dramatic shift with the introduction of a new Electric Vehicle (EV) policy. This policy is designed to intensify competition in the electric passenger vehicle (PV) segment and significantly benefit the domestic auto component industry. By lowering import duties and emphasizing localization, the government aims to attract global automotive giants like Tesla and Vinfast, thereby transforming the market dynamics. Analysts have weighed in on the potential impacts, indicating both opportunities and challenges for various stakeholders.

The New EV Policy: Key Highlights

The government’s EV policy is a multifaceted approach to boost the electric vehicle market in India. Here are the core aspects:

 

  • Reduced Import Duties:

    • Automakers are allowed to import up to 8,000 EVs annually, priced at $35,000 or higher, at a significantly reduced import duty of 15%, down from the previous 70%.
    • This concession is contingent upon the automaker committing to invest at least $500 million in local manufacturing over a specified period.
  • Localization Requirements:

    • The policy mandates a 25% domestic value addition (DVA) within the first three years and 50% within five years.

    • Companies must provide a bank guarantee to back their investment commitments, ensuring that the reduced import duties are justified by substantial local investment.

 

  • Market Penetration Potential:

  • Considering that India sold 42,000 luxury cars in 2023, the import allowance of 8,000 premium EVs per year at lower duties could lead to a market penetration of approximately 20%.

Implications for the Indian Market

The introduction of the new EV policy has several far-reaching implications for the Indian automotive market. Here’s a detailed look at these potential impacts:

Increased Competition in the EV Segment: The entry of international players such as Tesla and Vinfast is expected to significantly increase competition in the electric PV market. This new wave of competition will challenge domestic OEMs like Mahindra and Tata Motors, pushing them to innovate and improve their offerings. The mid-to-premium EV segment, in particular, is likely to see heightened activity, as these global brands bring in advanced technology and new models that appeal to Indian consumers.

Boost to Local Manufacturing and Auto Components: One of the primary objectives of the policy is to boost local manufacturing. By requiring a substantial investment in local production and setting stringent localization targets, the policy ensures that the benefits of global investments are shared with domestic industries. This focus on localization is expected to create significant opportunities for domestic auto component manufacturers, who will see increased demand for locally produced parts and advanced technology solutions.

Consumer Interest and Market Dynamics: The policy is likely to attract considerable consumer interest, particularly for EVs priced at or below ₹20 lakh. Such vehicles are expected to appeal to a broad segment of the Indian market, driving significant growth in the electric PV segment. However, this increased competition could pose challenges for existing Indian manufacturers, who will need to enhance their value propositions to retain market share.

Expert Opinions on the New Policy

Analysts from various financial services firms have provided their insights into the potential impacts of the new EV policy. Here’s what they have to say:

  • Emkay Global Financial Services:

    • Emkay analysts believe that the policy ushers in a phase of both growth and uncertainty for the PV industry. The increased competition from international players will disrupt the market but also offer opportunities for growth. Domestic manufacturers will need to adapt quickly to remain competitive.

  • InCred Equities:

    • According to InCred analysts, the policy is particularly attractive for new EV makers like Tesla and joint ventures such as Mahindra-Volkswagen. However, it may pose a disadvantage to luxury brands like Mercedes and BMW, which currently import EVs at higher duties. These brands will need to rethink their strategies to compete effectively in the evolving market landscape.

  • Motilal Oswal Financial Services:

    • Motilal Oswal analysts suggest that the policy aims to foster an EV ecosystem and promote local manufacturing while protecting Indian OEMs operating below the $35,000 price point. Nevertheless, the policy could impact the sales of upcoming models from M&M and Tata Motors at the upper end of the SUV market and luxury vehicles from German brands.

  • Kotak Institutional Equities:

    • Kotak analysts believe that the immediate impact on the domestic market will be minimal due to the high price points of imported EVs and the annual import cap. However, the long-term competitive intensity is expected to rise, with domestic players needing to step up their game in the electric vehicle segment to compete with global entrants like Tesla.

The Road Ahead: Challenges and Opportunities

While the new EV policy opens up several opportunities, it also presents challenges that various stakeholders will need to navigate. Here’s a closer look at these aspects:

Opportunities for Growth and Innovation: The policy provides a fertile ground for innovation and growth. Domestic OEMs and auto component manufacturers can leverage the increased focus on localization to develop new technologies and improve production processes. This can lead to the creation of more affordable and efficient EVs, which will further drive market growth.

Challenges for Domestic Manufacturers: Domestic manufacturers will face significant challenges as they compete with well-established global brands. These challenges include the need to invest in new technologies, enhance production capabilities, and improve the overall value proposition of their EV offerings. Companies that can successfully navigate these challenges will emerge stronger and more competitive in the global market.

Potential Impact on Luxury Vehicle Market: The policy could disrupt the luxury vehicle market, particularly for brands that rely heavily on imports. Companies like Mercedes and BMW will need to adapt their strategies, possibly by increasing local production or forming new partnerships to remain competitive. This could lead to a reshaping of the luxury vehicle segment, with a greater focus on locally produced models.

Regulatory and Policy Considerations: The success of the new EV policy will depend on effective implementation and monitoring. Ensuring that companies meet their investment commitments and localization targets will be crucial. Additionally, the government may need to introduce further incentives and support measures to encourage more widespread adoption of EVs.

Conclusion: A Transformative Policy for India’s EV Market

India’s new EV policy represents a bold step towards transforming the electric passenger vehicle market. By attracting global manufacturers, boosting local production, and enhancing competition, the policy has the potential to significantly reshape the automotive landscape. Domestic auto component manufacturers stand to benefit greatly from the increased focus on localization and technological investments.

While challenges remain, particularly for domestic OEMs and luxury vehicle manufacturers, the opportunities for growth and innovation are immense. As the market evolves, stakeholders will need to adapt quickly to capitalize on the new dynamics and drive the growth of India’s EV ecosystem.

The future of India’s EV market looks promising, with the new policy setting the stage for a more competitive, innovative, and sustainable automotive industry. As global and domestic players gear up for this new era, consumers can look forward to a broader range of electric vehicle options, improved technology, and a more robust market overall.

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Blog

EV Sales Soar Worldwide in 2025 as China Hits Record Milestone

Published

on

Electric car charging in a sunny open parking lot, with a charging station showing 100% battery, reflecting global EV growth in 2025.

The electric vehicle (EV) industry has had a strong start to 2025, and the numbers are doing all the talking. According to the latest reports, global EV and plug-in hybrid sales jumped 24% in May compared to the same time last year.

And while overall growth is impressive, it’s China that’s truly making headlines: for the first time ever, the country’s battery electric vehicle (BEV) sales topped 1 million units in a single month. Meanwhile, total BEV deliveries globally are up 39.4% year-over-year in the first four months of 2025, clear proof that the EV shift isn’t just a trend anymore.

EV Sales Growth: A Global Picture

Across the board, the numbers show a rising appetite for electric and plug-in vehicles. While the 24% growth figure for May includes both BEVs and plug-in hybrids, it’s battery electric vehicles that are driving the bulk of the momentum.

A few patterns are becoming clear:

  • China continues to dominate in both production and sales, offering everything from entry-level electric city cars to premium SUVs. 
  • Europe is steadily advancing, helped by strong climate regulations and buyer incentives. 
  • The U.S., while playing catch-up, is finally seeing volume growth as Tesla expands, and legacy automakers get more serious about EV offerings. 

This global mix of market push and policy pull is turning EVs into a mainstream choice in more regions than ever before.

🇨🇳 China Hits 1 Million BEV Sales in a Month

Yes, you read that right—one million battery electric vehicles sold in one country, in one month.

China’s EV ecosystem is unlike any other. Brands like BYD, Wuling, XPeng, and NIO are pumping out a wide variety of models that appeal to nearly every income group. And they’re selling fast.

Government support continues to play a huge role. Local authorities offer everything from license plate benefits to EV-only zones in cities. Combine that with expanding fast-charging access—even in rural areas—and it’s no wonder the country’s adoption rate is breaking global records.

BEV Deliveries Up 39.4% in First 4 Months

If you look at the bigger picture, it’s battery EVs, not plug-in hybrids, that are growing the fastest.

Between January and April 2025:

  • BEV deliveries rose nearly 40% compared to the same period in 2024. 
  • Plug-in hybrids also gained, though at a slower pace. 

Why the shift? For one, battery prices have dropped, making EVs more affordable. Vehicle range is better. Charging networks are expanding. And perhaps most importantly, people are now seeing EVs as smart, reliable, and increasingly stylish options.

For many, the hesitation is over.

What’s Next for the EV Market?

Looking at the rest of 2025, there’s little doubt that growth will continue. Forecasts suggest:

  • EV sales may cross 16 million units globally this year 
  • BEVs could make up 70% of all electric vehicle sales 
  • More nations are expected to set firm phase-out dates for petrol and diesel vehicles 

Car brands are also adapting quickly. More EV launches are lined up for the second half of the year, and investments in battery plants and tech upgrades are accelerating.

The shift from “early adoption” to mass market is underway.

The data doesn’t lie—EVs are going mainstream, and fast. Whether it’s China’s million-car milestone or the nearly 40% global jump in BEV deliveries, one thing is clear: the age of electric mobility isn’t coming. It’s already here.

What once felt like a futuristic idea is now something millions of people are choosing each month. And as infrastructure catches up and models become more affordable, that number is only going one way—up.

 

Article By
Sourabh Gupta

 

Continue Reading

Blog

Tesla’s Robotaxi Vision: Elon Musk Gears Up to Launch 10 Driverless EVs, Targets 1,000 Soon After

Published

on

Elon Musk with Tesla Robotaxi – Launch Announcement 2024

When Elon Musk makes an announcement, people listen. This time, he’s setting the stage for what could be Tesla’s most ambitious move yet: fully driverless electric taxis. According to Musk, Tesla plans to put 10 Robotaxis on the road in the first week, followed by a rapid scale-up to 1,000 vehicles in just a few months.

It sounds bold—maybe even a little wild—but with Tesla, that’s usually how innovation starts.

What Exactly Is Tesla’s Robotaxi?

In short, it’s a car without a driver. No steering wheel, no pedals—just a fully electric, fully autonomous vehicle built specifically for ride-hailing. Unlike the Teslas we’re used to seeing on the roads, this one won’t be sold to the public. It’s meant to be part of a Tesla-run mobility service, kind of like Uber, but without the driver and without the app middleman.

It’s not a distant concept. The vehicle is already in the works, and Musk claims the design is futuristic—”Cybertruck-level” is the comparison he used. So yeah, this isn’t your average city cab.

When’s It Launching?

Musk says we’ll get our first real look at the Robotaxi in August 2024. After that, Tesla plans to launch a small fleet, just 10 cars to start, they can test the waters, collect data, and figure out what needs fixing before going bigger.

And if everything lines up—software, safety, regulators—Tesla hopes to push that number to 1,000 Robotaxis within a few months. That’s aggressive, but Tesla doesn’t exactly do slow rollouts.

How Will It Actually Work?

The Robotaxis will rely on Tesla’s Full Self-Driving Version 12, which is less about rule-based coding and more about machine learning. Think of it like a car that doesn’t just follow a script—it learns how to drive the way a human does, by watching and doing.

If you’re a user, you’d open the Tesla app, tap for a ride, and one of these cars would show up at your location. You hop in, it takes you where you need to go, and you’re done. No driver, no tipping, no talking—unless you want to.

It sounds simple, but what’s happening behind the scenes is far from it.

Why This Matters

Tesla isn’t just building another vehicle—they’re building an entirely new way to get around. If it works, here’s what it could change:

  • Cost: Without a driver, rides could be way cheaper. Musk has hinted they might be more affordable than a bus ride.
  • Emissions: These are EVs. They’ll reduce carbon output in cities where pollution is already a serious issue.
  • Access: For people who can’t drive—due to age, disability, or cost—this could offer real independence.

In other words, this isn’t just a product launch—it’s a shift in how we think about car ownership, mobility, and even infrastructure.

What Could Hold It Back?

Of course, it’s not going to be smooth from day one.

  • Laws and policies: Driverless cars aren’t approved everywhere. Tesla will have to work city by city.
  • Trust: Are people ready to ride alone in a car with no driver? Some will love it, others will hesitate.
  • Technical risks: Even with all their data, unexpected stuff happens on the road. A pothole, a cyclist, a weird driver cutting you off—will the car know what to do every time?

And then there’s the elephant in the room: Tesla’s FSD still isn’t perfect. We’ve seen missed timelines before, so there’s room for doubt.

What’s Next?

August is going to be a big month for Tesla. Once those first 10 Robotaxis roll out, all eyes will be on how they perform. If they run smoothly, we could be looking at the early stages of a major shift in how transportation works.

Maybe in a couple of years, you won’t need to own a car. You’ll just press a button and a sleek, silent Tesla will pull up—no steering wheel, no driver, just you and your destination.

And honestly? That future doesn’t feel so far off anymore.

 

Article By
Sourabh Gupta

Continue Reading

Blog

Zomato Rolls Out Electric Bikes in Delhi to Drive Greener Deliveries

Published

on

Zomato Rolls Out Electric Bikes in Delhi

Zomato is taking another big step toward sustainability—and this time, it’s hitting the streets of Delhi. The food delivery giant has officially launched a fleet of electric bikes for deliveries across the capital. If you spot a Zomato delivery partner silently cruising by on a bike, chances are it’s electric.

This isn’t just a feel-good move. The company has been serious about going green, and this launch is part of its goal to make 100% of its deliveries electric by 2030. The rollout is starting with 300 e-bikes, and if all goes well, more cities could be next.

Why This Rollout Matters

Electric vehicles in food delivery aren’t new, but access has been limited, especially for gig workers. Buying an EV outright isn’t cheap, and not every delivery partner is ready for that kind of commitment.

That’s where this pilot stands out. Instead of asking delivery partners to buy the bikes, Zomato is offering them for rent, making the shift more practical and affordable. No loan, no down payment—just a low daily or weekly rental. It’s designed to remove the biggest barrier: cost.

Plus, the e-bikes are tailored for delivery—lightweight, reliable, and designed to zip through city traffic without guzzling petrol or burning a hole in your wallet.

Zomato’s Sustainability Timeline

This isn’t Zomato’s first green initiative. Over the past year, the company’s EV fleet has already helped avoid thousands of tonnes of CO₂ emissions—and they’ve got numbers to back it up.

Just last year, Zomato completed over 37 million EV-based orders, cutting down emissions by around 4,900 tonnes. To put that into perspective, it’s like planting over 2 lakh trees. And now with the new e-bike fleet, those numbers are only going to grow.

They’ve also committed to going net zero by 2033, so this isn’t a one-time campaign—it’s part of a larger mission.

How This Helps Delivery Partners

For most delivery riders, the cost of petrol is a constant headache. Many spend ₹300–₹400 a week just on fuel. EVs, on the other hand, cost a fraction to run and require almost no maintenance.

By giving riders the chance to rent electric bikes, Zomato is helping them save money and work more efficiently. No more worrying about rising fuel prices or wasting time at fuel stations. Riders can now focus on completing more orders and earning more, without added stress.

Some early riders have already shared their experience. “The bike is smooth and quiet. I don’t have to think about fuel anymore,” said one partner, smiling. “And the rental is cheaper than what I used to spend on petrol.”

Why Delhi First?

Delhi is the perfect place to test this kind of shift. The city has been pushing hard on EV adoption, offering strong policy support and better infrastructure. Plus, it’s one of Zomato’s busiest zones, which makes it an ideal testing ground.

With tighter roads, heavy traffic, and growing air pollution concerns, Delhi needs cleaner, quieter mobility—and that’s exactly what this pilot aims to deliver.

What to Expect Next

Zomato’s plan is simple: test this out, see what works, and improve before scaling up.

In the next few months, they’ll track everything—how many partners use the e-bikes, how reliable the system is, how often the bikes are rented, and whether it actually makes life easier for the riders.

If the results are positive (and there’s every reason to believe they will be), you can expect this to roll out in more cities soon. Mumbai, Bengaluru, Pune, and Hyderabad are all on the radar.

This EV pilot from Zomato might seem small at first—just 300 bikes—but it could have a big impact. It’s a practical move that supports both the environment and the people who power the delivery ecosystem.

If it succeeds, it won’t just reduce emissions—it could completely change how last-mile delivery works in India. And who knows? The next time you order your favorite meal, it might show up faster, quieter, and greener than ever before.

 

Article By
Sourabh Gupta

Continue Reading

Trending