Electric Vehicles on Roads, needs change in technology

Electric Vehicles on Roads, needs change in technology

India's electric vehicle (EV) landscape has experienced significant growth and transformation in recent years. This comprehensive overview delves into the various facets of EV adoption in the country, including the models available, pricing challenges, advancements in battery technology, fiscal policies, manufacturing regulations, and the entry of foreign manufacturers.

Electric Vehicles on Indian Roads

As of early 2025, several EV models have been introduced to the Indian market, catering to diverse consumer preferences:

Hyundai Ioniq 5: Launched in January 2023 at the Auto Expo, this model is Hyundai's second electric offering in India, following the Kona Electric. The Ioniq 5 is assembled locally and is powered by a 72.6 kWh battery with rear-wheel drive. 

Pravaig Defy: An indigenous premium electric SUV introduced by Bengaluru-based startup Pravaig Dynamics. The Defy boasts a range of 500 km and was launched at a price of ₹39.5 lakh, with deliveries commencing in 2023. 

MG Windsor EV: Unveiled in September 2024, the MG Windsor EV is available in three trims—Excite, Exclusive, and Essence. Each variant is equipped with a 38 kWh battery pack, offering a commendable range. Post-launch, it rapidly became the best-selling EV in India, surpassing competitors like the Tata Nexon EV. 

Kia EV9: Introduced to the Indian market in October 2024, the EV9 is available in the GT Line variant, featuring a long-range all-wheel-drive powertrain. 

Pricing Challenges

Despite the increasing number of EV models, high prices remain a significant barrier to widespread adoption. Factors contributing to elevated costs include the expensive battery components and limited economies of scale. For instance, while Tesla's advanced technology could provide it with an edge in the market, high import duties may push prices to around ₹3.5 million, compared to an average of ₹1.2 million for Indian cars. 

Advancements in Battery Technology

To enhance the durability and affordability of EVs, significant strides have been made in battery technology:

SUN Mobility's Innovations: The company introduced the second-generation Smart Battery S2.1 at the Delhi Auto Expo in January 2023. These modular batteries are smaller, lighter, and swappable within minutes, offering higher capacity and enhanced safety features. Additionally, the SwapX is a compact battery-swapping station designed to improve the density of the battery-swapping network, requiring minimal space and a standard 15A power supply. 

Fiscal Policies: Taxes and Duties

The Indian government has implemented several measures to make EVs more affordable:

Income Tax Benefits and GST Reductions: Under Section 80EEB of the Income Tax Act, buyers can claim a deduction of up to ₹1.5 lakh on the interest paid for loans taken to purchase EVs. Additionally, the Goods and Services Tax (GST) on electric vehicles has been reduced from 12% to 5%, and the GST on charging infrastructure has been lowered to 18%, encouraging the installation of more charging stations. 

Regulatory Environment for Production

To bolster domestic manufacturing and attract foreign investment, the government has introduced several initiatives:

Production Linked Incentive (PLI) Scheme: This scheme offers incentives on incremental sales from products manufactured in domestic units. Specifically, a ₹26,000 crore scheme has been introduced for the production of electric vehicles and hydrogen fuel vehicles, aiming to generate 750,000 direct jobs in the auto sector. 

National Electric Mobility Mission Plan (NEMMP): Launched in 2013 and upgraded in 2024, the NEMMP aims to achieve a target of 6-7 million EVs on Indian roads by 2025. The plan focuses on increasing EV market share, promoting research and development for next-generation technologies, and expanding the EV ecosystem, including charging infrastructure. 

Entry of Foreign Manufacturers

India's burgeoning EV market has attracted significant interest from global automakers:

Tesla's Prospective Entry: Tesla is getting closer to launching its electric vehicles in India, causing concern among local automakers. Elon Musk's recent meeting with Prime Minister Narendra Modi and the selection of showrooms in New Delhi and Mumbai indicate fast-tracked plans. 

VinFast's Investment: Vietnam's VinFast has commenced constructing its EV plant in the southern state of Tamil Nadu, with a committed investment of $2 billion, signaling its intent to capture a share of the Indian EV market. 

India's EV market has made notable progress with the introduction of diverse models and supportive government policies, challenges such as high vehicle costs and infrastructure limitations persist. Continued advancements in battery technology, favorable fiscal measures, and the entry of foreign manufacturers are poised to drive the next phase of growth in the Indian EV sector.