BS EDIT: The EV Surge in India

By Business StandardPublished On Jul 24, 2025

Foreign players shift gears

VinFast and Tesla are entering the Indian market, but with contrasting approaches to investment, pricing, and localisation

Manufacturing vs. import strategy

While Tesla imports Model Y at a steep cost, VinFast plans to build a $2 billion plant in Tamil Nadu to produce and export EVs

Shifting ground for Indian automakers

India’s legacy carmakers will be impacted unequally by EV adoption. The transition may favour some and strain others

Value chain disruption ahead

Unlike ICE vehicles, EVs concentrate value in fewer stages—mainly batteries—leaving India’s auto-component sector exposed

Contradictions in EV policy

India incentivises EV adoption but restricts key foreign investment. Balancing clean energy goals with economic control remains tricky

Questions for the future

From charging infrastructure to grid load and standardisation, India’s EV transition hinges on regulatory clarity and policy foresight