Indian auto industry revs up EV push with new policy, manufacturers unveil plans

The Indian automotive industry is set to witness a surge in electric vehicle (EV) offerings in the coming years, following the government's recent unveiling of a new policy aimed at promoting environmentally friendly mobility solutions, a report by PTI suggested. Leading players such as Maruti Suzuki, Hyundai, Mahindra & Mahindra, and Tata Motors are all gearing up to introduce a range of new electric models across various segments.

Mahindra & Mahindra's CEO Automotive Sector, Nalinikanth Gollagunta, announced plans to roll out five new battery electric vehicles starting January 2025. These electric SUVs, built on Mahindra's innovative INGLO platform, aim to cater to a wide range of consumers and are part of the company's strategy to have 20 per cent to 30 per cent of its portfolio electric by 2027.

Maruti Suzuki is also investing heavily in EVs, with plans to begin production of a high-spec EV with a 550 km range in FY24-25. The company aims to introduce six EV models over the next 7-8 years. However, Maruti Suzuki's Rahul Bharti emphasised the need for a variety of technologies, including hybrid-electric, CNG, Bio-CNG, and Ethanol flex fuel, to reduce carbon emissions and oil imports.

Hyundai Motor India, a pioneer in the Indian EV market, introduced the fully long-range electric SUV KONA in 2019 and recently launched the premium electric SUV IONIQ 5. Hyundai's COO, Tarun Garg, expressed confidence that EVs will constitute around 20 per cent of India's automotive market by 2030, driven by the government's focus on electric vehicles and supportive policy framework.

Tata Motors plans to have 10 EVs by 2026, with four new EV models set to be introduced this year, including the Curvv EV and Harrier EV.

Luxury carmakers like Mercedes-Benz and Audi are also ramping up their EV lineup in India. Mercedes-Benz plans to introduce more than 12 new products in 2024, including three new battery electric vehicles (BEVs), while Audi expects 50 per cent of its sales in India to come from electric vehicles by 2030.

The government's recently approved electric vehicle policy offers duty concessions to companies investing at least $ 500 million in setting up manufacturing units in India, a move aimed at attracting global players like Tesla.Mahindra & Mahindra's Gollagunta believes that this policy will accelerate the EV ecosystem in India, reinforcing the Make in India momentum with requirements for bank guarantees, minimum investment commitments, and local value addition.