Tata and Mahindra EVs will give Tesla a run for its money: Amitabh Kant

India's G20 Sherpa Amitabh Kant speaks on India's potential to become a global champion in two- and three-wheeler EV market at BS Manthan

India’s G20 Sherpa and former NITI Aayog CEO, Amitabh Kant, strongly advocates for India’s leadership in the electric vehicle (EV) sector. Speaking at the second edition of BS Manthan, Business Standard’s flagship thought leadership summit, he asserted that domestic automakers like Tata Motors and Mahindra will ensure that Tesla does not dominate the Indian market. Kant also emphasised the need for a nationwide transition to EVs, urging greater government adoption.

 

“Tatas and Mahindras will not allow Tesla to succeed, their prices are very competitive,” Kant said. He also revealed that he himself had switched to EV: “I drive an EV and have just booked a Mahindra EV.”  

 

 

Speaking at the event, he emphasised the need for India to become a global champion in EV manufacturing, particularly in two-wheeler and three-wheeler segments, where it has a strong export base. If India fails to electrify these segments, it risks losing its market dominance, he warned.   

 

Kant also called on the government to lead by example, stating, “Every Indian should move to an EV, and the government should not buy any fossil fuel cars. The government should become the first driver of EV adoption.”  

 

US’ UN withdrawal, an opportunity for India

Kant pointed out that the US withdrawing from UN climate commitments could be an opportunity for India, much like how China capitalised on past climate policy shifts to dominate global markets.  

 

“The last time the US walked out, China took that opportunity and today controls 80 per cent of the world’s critical minerals, 78 per cent of the solar market, and 70 per cent of the EV market,” he noted.  

India must not miss its chance this time, he said, particularly in EVs.  

 

Currently, Tesla holds only 11 per cent of the global EV market, while Chinese manufacturer BYD leads with 20 per cent, Kant said. With strong government policies and industrial support, India can emerge as a key player in the EV supply chain.  

 

Govt’s role in accelerating growth  

While acknowledging the government’s positive initiatives, Kant stressed the need for faster policy implementation, particularly at the state level. He commented, “Our economists are communists and our bureaucrats have a socialist mindset.”

 

This included: 

- India needs to grow at 8.5-9 per cent instead of its usual 6 per cent.  

- State governments must simplify processes by eliminating unnecessary regulations and outdated policies.  

- Sustainable urbanisation is essential, as 46 per cent of India’s workforce is still in agriculture and needs opportunities in industry and urban sectors.  

 

Adding on to this, Kant made several key policy recommendations. Such as: 

- Faster policy execution at state levels.  

- Simplifying laws to create an enabling business environment.  

- Accelerated urbanisation to boost economic growth.  

- Unleashing the private sector by scrapping redundant rules.  

- Expanding the production-linked incentive (PLI) scheme to create large-scale domestic companies.