India Plans to Dominate Electric Vehicle Production by 2030, According to Nitin Gadkari
India's automobile industry has witnessed a significant expansion over the past few years, growing from ₹14 lakh crore in 2014 to ₹22 lakh crore today. This growth has propelled India past Japan to become the world's third-largest automobile market.
The country's ambition to surpass these giants in electric vehicle (EV) production by 2030 is ambitious but not unattainable, given the rapid advancements in the sector and strong policy support. Union Minister Nitin Gadkari has reaffirmed India's goal to become the world's largest EV manufacturer by 2030.
The country has seen substantial investment in battery and vehicle manufacturing due to policies like the FAME scheme and PLI for EV makers. This investment has led to the production of several EV models by significant companies such as Suzuki, Tata Motors, MG Motor, Hyundai, and Toyota. Suzuki, for instance, produces the e Vitara EV and lithium-ion batteries in Gujarat and exports globally. The company is also expanding production capacity with a plan to add a fourth EV production line by 2026. Toyota plans to focus on low-cost hybrid vehicles for the Indian market through collaboration with Suzuki.
Tesla has recently entered India but with limited initial deliveries and market presence. However, companies like Tata Motors, Mahindra & Mahindra, and Ola Electric are ramping up production and launching new EV models across different price segments. Some companies in India are already exporting half of their EV production, and there is anticipated global and domestic demand for EVs.
The shift towards electric mobility in India is driven by government incentives, local manufacturing push, and increasing consumer acceptance. Gadkari highlighted India's progress in alternative fuel vehicles and the growing demand for EVs both domestically and internationally.
However, there are challenges that need to be addressed for mass EV adoption in India. Infrastructure, particularly charging networks, is a key challenge. Startups and legacy automakers are investing in R&D to localize production and reduce dependency on imports.
Declining lithium-ion battery costs and ongoing advancements in battery technology are key enablers for India's EV ambitions. However, raw material dependency for lithium and other key EV components poses a supply chain risk. To mitigate this, there is a need for domestic research into alternative battery chemistries like sodium-ion and solid-state batteries.
Gadkari stated that when the government came to power in 2014, the idea of large-scale EV adoption in India was met with scepticism. However, he expressed confidence in India's trajectory towards EV leadership, stating that petrol cars and electric cars are expected to cost the same in six months.
In conclusion, India's ambitious goal to become the world's largest EV manufacturer by 2030 is backed by substantial investment, strong policy support, and rapid advancements in the sector. While challenges remain, particularly in infrastructure and raw material dependency, the country is well on its way to achieving this goal.
