India’s electric vehicle (EV) industry is not just growing—it’s transforming into one of the largest green mobility markets in the world. With government incentives, rising consumer adoption, and a rapidly expanding charging infrastructure, India presents a strategic opportunity for UK businesses. From manufacturing to software solutions, the EV ecosystem in India is ready for global partnerships.
For UK businesses, this presents a once-in-a-generation opportunity to expand into one of the fastest-growing and most dynamic automotive markets in the world.
India’s EV Revolution – A Market Ripe for Global Players
Sector Growth and Global Positioning
- The automobile sector contributes 6% to India’s GDP, with over 22 million vehicles registered in 2023.
- Exports reached 4.5 million units in FY 2023–24, including 672,105 passenger vehicles and 3.45 million two-wheelers.
- Global OEMs are leveraging India as a production hub: Skoda Auto Volkswagen India exports ~30% of its production, while Maruti Suzuki exported ≈ 283,000 units in FY 2023-24 (and ~332,000 in FY 2024-25).
Foreign Investment Momentum
India has attracted $36 Bn (≈ INR 2,97,600 Cr) billion in Foreign Direct Investment (FDI) in the last four years, a testament to its growing importance in global automotive supply chains.
- Hyundai has committed to a $4 Bn (≈ INR 33,200 Cr) expansion in India.
- Mercedes-Benz has proposed a $360 M (≈ INR 2,988 Cr) investment in Maharashtra. The policy environment is favorable, with 100% foreign direct investment allowed under the automatic route in India’s automotive sector.
- Toyota Kirloskar Motor invested $394 M (≈ INR 3,300 Cr) to establish its third plant in Bidadi, Karnataka, and signed an MoU with Maharashtra for a new greenfield facility.
EV Adoption Accelerating
- As of August 2024, 4.4 million EVs were registered in India, including 956,000 units in the first eight months alone.
- This represents a 6.6% market penetration, with strong momentum across two-wheelers, three-wheelers, passenger vehicles, and buses.
Why UK Businesses Should Enter the Indian EV Market
Policy & Incentives
- Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II): $33.6 M (≈ INR 2,671.33 Cr) allocated in the 2024–25 Budget to accelerate adoption.
Focus: Demand creation for 7,000 e-buses, 500,000 e-three wheelers, 55,000 passenger EVs, and 1 million two-wheelers.
- Production Linked Incentive (PLI) Scheme for ACC Batteries: Approved on 12 May 2021 with $228 M (≈ INR 18,100 Cr),, incentivizing local ACC battery production in India.
Progress: Three firms already selected for a 30 GWh capacity; Phase II planned.
- Production Linked Incentive (PLI) Scheme for the Automotive Sector:
Focus: Advanced Automotive Technology (AAT) products including EVs and hydrogen-powered vehicles.
Investment Response: Attracted $9 Bn (≈ INR 74,850 Cr) against a target of $5.1 Bn (≈ INR 42,500 Cr).
- Electric Mobility Promotion Scheme (EMPS): $6.6 M (≈ INR 500 Cr) package targeting two- and three-wheelers to fast-track EV adoption.
- Custom Duty Exemptions: Import of critical minerals for EV cell components now duty-free, strengthening battery manufacturing.
Additional Policy Boosts
- GST Cuts: EVs (12% → 5%); chargers/charging stations (18% → 5%).
- Green Number Plates: Special license plates & permit exemptions for EVs.
- Road Tax Waivers: Lower upfront cost of EV ownership.
- Charging Infrastructure Expansion: Oil Marketing Companies to install 22,000 EV charging stations across highways and cities.
Strategic Opportunities for UK Companies
- EV Manufacturing Partnerships: Leverage India’s role as a global hub by collaborating with local OEMs.
- Battery & Recycling Technology: UK innovation in chemistry, cell design, and recycling can fill India’s gaps.
- Charging Infrastructure: Opportunities in hardware, energy storage, payment integration, and smart grids.
- Fleet Electrification & Software: With rapid electrification of public transport and logistics fleets, UK firms can provide advanced telematics, fleet management, and route optimisation solutions.
Challenges of Entering the Indian Market
- Complex Policy Environment: Variations between federal and state-level policies can create compliance complexity.
- Infrastructure Gaps: Power reliability, charging networks, and logistics are evolving but not yet at scale.
- Regional Diversity: Consumer behaviour and regulatory enforcement differ significantly across states.
How Technovedge Ltd Helps UK Businesses Expand in India
At Technovedge Ltd, we guide UK businesses through every stage of their India expansion journey:
- Market Research & Feasibility Studies: Sector insights covering EV hotspots, ROI projections, and competitive benchmarking.
- Regulatory Navigation: Compliance support for FAME II, PLI, EMPS, and state-level EV policies.
- Strategic Partnerships: Identifying OEMs, suppliers, and distributors for long-term growth.
- Go-to-Market Strategy: Tailoring product positioning, pricing, and brand strategy for Indian consumers.
- Sustainable Growth Planning: JV support, localisation strategies, and roadmap for long-term success.
Why Invest in India’s Automobile & EV Sector?
- Growing Income: Per capita Net National Income rose 35% over the last decade, from $890 (≈ INR 72,805) in 2014–15 to $1,305 (≈ INR 106,744) in 2023–24.
- Vehicle Penetration Rising: Expected to reach 72 vehicles per 1,000 people by 2025.
- Expanding R&D Hub: India contributes 40% of the $31 Bn global engineering and R&D spend, making it a powerhouse for automotive innovation.
- Self-Reliant India (Atmanirbhar Bharat Abhiyaan): $245 Bn (≈ INR 20 lakh Cr) package to promote manufacturing and reduce import dependence.
- Lithium Discovery in Jammu & Kashmir: A potential game-changer for India’s battery industry, strengthening the EV supply chain.
Ready to Expand into India’s EV Market?
India is positioning itself as a global automotive and EV hub—and UK businesses are uniquely positioned to bring cutting-edge expertise to this market.
👉 Partner with Technovedge Ltd to unlock growth opportunities in India’s green mobility revolution.
📩 Contact Us Today to get started.
