The Indian EV industry is poised to see exponential growth over the next decade as there is a massive paradigm shift in the automobile industry from an ICE based ecosystem to a shared, connected and electric ecosystem. Huge investments will be made in storage, EVs and charging infrastructure over the next decade as EV costs reach a tipping point vis-à-vis the ICE vehicle costs. As we have said before, the Indian federal policy and regulation, with respect to the EV industry are mired in confusion as vested interests have not led to a coherent policy and roadmap development for the Indian industry. Each ministry seems to be charting its own roadmap with Niti Aayog only providing ad-hoc support. However, on the other hand, some states have realized the huge potential of the industry and come out with good policies to foster and regulate the growth of the industry which has the potential to catalyze huge investments and job creation.

States Push EVs in India

States like Karnataka, Maharashtra, Gujarat, Telangana, and Delhi have come out with their state policies which are tailormade for the requirements of their state. While the states have given equal emphasis to manufacturing and EV vehicle growth, Delhi has focused on making EVs a key weapon in its fight against air pollution. Even the startups and large companies are aligning themselves with states in order to make investments. Kia Motors has already signed an MOU with the Andhra Pradesh government to invest in an EV factory in that state.

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Telangana has emerged as another major hub for EV startups. The state was the fourth one to launch an EV policy in July 2018. The policy gives a number of incentives for the growth of the EV ecosystem with subsidies and supports being given for the three key stakeholders – one for manufacturers, another to users who want to shift to electric vehicles, and lastly to support infrastructure. Gayam Motor Works is producing EVs in the state and selling them to corporate fleets while E-trio Automobiles, which assembles and sells retrofitted ICE vehicles is planning to extend its capabilities for three wheelers as well. The most famous EV manufacturer Olectra Greentech of Telangana which makes electric buses is also planning to enhance the capacity of its manufacturing plant to 5000 buses from 2100 buses. The electricity regulation of Telangana has also fixed a price of INR 6/kWh for powering EVs to give clarity to charging infra providers.