A FICCI-Yes Bank report states that a National Export Strategy for electric vehicles is a strategic necessity for India to scale production, improve costs, and capture emerging global value chains in Europe, Latin America, and Southeast Asia.
A National Export Strategy for electric vehicles is now a strategic necessity for India to scale production and improve cost curves as global EV sales are projected to triple by 2030. According to a FICCI-Yes Bank report titled 'EV Market - India's Export Competitiveness' released at the 3rd FICCI National Conference on Electric Vehicles (EVs), infrastructure augmentation and alignment with international safety and sustainability standards remain key to capturing emerging global value chains.
FICCI-Yes Bank Report Highlights
"As India invests in ecosystem development to enhance capabilities and its EV market starts to gain significance, exports become a strategic opportunity to scale production, improve cost curves, develop high-quality products with technology learnings, apart from helping broaden market diversification, absorbing regulatory shifts, and develop a global positioning," the report said. It highlights that such a strategy would help India gain an advantage in markets across Europe, Latin America, and Southeast Asia while absorbing regulatory shifts.
"Electric mobility continues to gain traction across vehicle segments and many countries are strengthening regulatory frameworks around safety, cybersecurity, battery traceability, and sustainability, which in turn are shaping market access conditions and often act as non-tariff barriers. The report highlights that these developments underscore the need for exporters to align with international trends, standards and compliance requirements," the report noted.
Global EV Market Trends
It stated that the global governments are driving the shift to clean mobility with purchase incentives growing 5 per cent YoY to USD 19 billion in 2024. "China dominated EV sales with strong incentives, while Europe's growth was driven by regulatory compliance with emissions reduction requirements," the report mentioned.
"Battery prices fell by 13% to USD 137/kWh in 2024; Advancements in cell chemistry, economies of scale from higher production, and improved supply chain efficiency. Charging also scaled up to meet demand, with 30% YoY increase in public chargers in 2024, driven by China and strong growth in Europe & the US," the report said.
Government's Vision for EV Manufacturing
Releasing the report on Wednesday, Minister of Heavy Industries and Steel H D Kumaraswamy stated that India's transition to electric mobility aligns with the national vision of reaching net zero by 2070. He noted that with clear policy direction and strong industry participation, the country can establish itself as a leading global center for manufacturing and innovation.
"With clear policy direction and strong industry participation, India can firmly establish itself as a leading global center for electric mobility manufacturing and innovation. Electric mobility today is not merely a climate initiative, but it is an industrial strategy with strong manufacturing opportunity and supply-chain recalibration," Kumaraswamy said.
Leveraging FTAs and Component Exports
He urged the industry to leverage India's expanding network of Free Trade Agreements with the EU, UK, and Australia to actively pursue export markets for EVs and their components.
"As our manufacturing depth strengthens, so does our export potential. Over the past decade, automotive component exports have nearly doubled, rising from about USD 8 billion to USD 16.9 billion, reflecting India's deepening integration into global value chains and its growing credibility as a manufacturing hub," he emphasised.
Kumaraswamy highlighted the government's commitment to developing a robust ecosystem through initiatives like the Rs 7,280 crore scheme for Sintered Rare Earth Permanent Magnets. "As we advance towards the vision of Viksit Bharat 2047, electric mobility must remain central to the Make in India agenda," Kumaraswamy added, stressing the importance of positioning India as a global production hub for batteries and critical components.
'EVs are India's Next Transformational Leap'
Amitabh Kant, former G20 Sherpa and ex CEO of NITI Aayog, described electric mobility as India's next transformational leap. He stated that batteries, power electronics, and charging infrastructure are the new engines of value creation in a global market projected to reach trillions of dollars.
"India must position itself as a trusted manufacturing hub for electric vehicles," Kant said. He further noted that the transition to electric vehicles must be viewed as a central pillar of the nation's long-term development goals, describing the shift as an economic and strategic opportunity rather than just a climate imperative.
Industry Leaders on E-Mobility 2.0
Industry leaders at the conference also pointed to the rapid evolution of the domestic ecosystem. Sulajja Firodia Motwani, Co-Chair of the FICCI Green Mobility Committee, said, "With the first phase of e-mobility adoption, India made significant progress, and we are now entering a new and accelerated phase of the e-mobility transition."
"From Green Mobility 1.0 to now 2.0, India has built an entire value chain. This spans from the processing of critical minerals to cell manufacturing, battery pack assembly, and the production of two-wheelers, three-wheelers, four-wheelers, buses, trucks, and even charging infrastructure," noted Vikram Handa, Co-Chair, FICCI Green Mobility Committee and Founder & MD, Epsilon Group.
Ganesh Mani, Co-Chair, FICCI Green Mobility Committee and COO & CEO, Ashok Leyland Ltd, said, "The shift to electric vehicles is not only about environmental benefits, but it is also about industrial and technological transformation. This transition will define the entire movement toward sustainable mobility for citizens across India."
Aanchal Jain, Member, FICCI Green Mobility Committee and Chief Executive Officer, PMI Electro Mobility Solutions Pvt Ltd, while delivering the vote of thanks, said that "electric mobility is no longer an emerging concept. It is now a strategic pillar of India's industrial transformation, climate action, and global trade ambitions."
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