Tesla may not be the only game-changer in the electric vehicle space anymore. We see many other manufacturers taking huge leaps in the sector, even in India – what with Tata Motors and its Nexon EV ruling a majority of the EV space, or Mahindra, who announced that a fully electric version of its popular XUV300 SUV will be launched in the second half of next year. 

Just like the global automotive market, the Indian automotive market is also going through a transition, and India is just at the beginning of this transition. We currently see electric two- and three-wheelers having great acceptance, which we will eventually see happening in the light vehicle market as well. As for four-wheelers, we are at the start of this transition. In that sense, both the passenger vehicle and small and light commercial vehicle segments will experience electrification eventually. However, the rate at which this happens will be slightly slower as compared to two- and three-wheelers because 80 percent of our market is A and B segment. 

In terms of two- and three-wheelers, the upfront cost, which has been a big hurdle for EV acceptance, has been taken care of by several government subsidies and the special GST rate that they get. Moreover, the government also supports in terms of direct consumer incentive provided to the customers/buyers. 

Another factor that is, in fact, proving to be of help is the rising price of fuel, Suraj Ghosh, Director – Powertrain research and analysis, S&P Global Mobility, tells us. “As the prices of fuel rise, customers are looking for cheaper alternatives. But we must remember that unless the upfront cost has been taken care of, the acceptance of EVs might still be difficult,” he says. 

The challenges
From the supply side, the supply chain for batteries is still not very smooth. Therefore, sourcing batteries that are of good quality is a big challenge for the EV ecosystem right now. “We don’t have the raw material needed for manufacturing EV batteries or cells. The cell production capacity is not available locally and so, it has to be sourced from countries like China, South Korea, Japan, Taiwan etc., making us dependent in that sense,” Ghosh informs. 

As for the manufacturers (again, from the supply side), there isn’t much clarity on long-term policies. Right now, the FAME scheme supports EV promotion. However, it has an expiry year of 2024. That raises the question of what happens after that. Will there be a new FAME scheme? Or will the government continue to support the EV ecosystem like it is now? Hence, due to the lack of such clarity, manufacturers are being slightly cautious and are hesitant when it comes to investments in EV manufacturing setups, Ghosh says. 

Currently, the lithium-ion batteries used in EVs have different battery chemistries and certain raw materials involved. “Forming collaborations, joint ventures and technological partnerships with companies that work in the upstream segment of mining operations of those raw materials can play a very key part in India’s future of electrification,” Ghosh asserts. He adds, “In fact, Indian OEMs can form a sort of consortium and collectively bargain for raw materials or other key components that go into EVs. This can turn out to be a good initiative by Indian OEMs.” 

Ghosh further informs that from the demand side, there are not many consumers in India who would happily pay premium for a vehicle just because it’s electric – this isn’t something that will happen overnight. Another challenge that comes to light is parity – in terms of price, convenience and range.

The consumer
Ghosh also believes that the upcoming battery electric vehicles in India are being made keeping a price-conscious customer in mind. He further explains, “When we say EVs, we always talk about range. We cannot have a huge battery pack in our car, because then that would increase the cost. And an increase in cost results in isolating a huge segment of the market that can’t afford that car. Therefore, we have to strike a balance between the range and price of the car, where it becomes affordable and satisfactory in terms of the range. Therefore, this is something that OEMs are keeping in mind for their battery electric vehicles.”

The hybrid strategy

So far, all the OEMs in India have been following a wait-and-watch policy – they do not want to commit to any major investment decisions. If the OEMs have the above-mentioned clarity, we will naturally see more investments being made in EVs. “Right now, some OEMs are gradually introducing EVs but not going all in,” Ghosh cites and adds, “The all-in push from OEMs may not happen at least for the mid-term but perhaps towards the later part of this decade.” 

The strategy for electrifying powertrains is basically an effect of how strict or strong the country’s CO2 regulation is. The CO2 regulation in India is called Corporate Average Fuel Efficiency (CAFE) norm. “The second phase started in April this year, and while this norm does demand the electrification of powertrains, it does not mandate OEMs to have pure EVs in their fleet,” Ghosh shares and continues, “OEMs can comply with these norms by having just hybrid vehicles or having a mix of diesel or CNG in their fleet. In that sense, the regulatory situation is not strict enough to trigger any kind of pure EV adoption – however, hybrids are promoted at the same time. Hybrids are a cheaper method of complying with these CO2 norms and they will be a good strategy for most OEMs. We think that the Toyota and Suzuki joint venture hybrids will be hitting the market very soon – probably later this year or early next year, as we have the second phase of CAFE already in place. However, the hybrid strategy won’t be adopted by every OEM; it will be OEM-specific.” 

“The CO2 compliance can be achieved without EVs and just hybrids,” Ghosh further tells us. In truth, if an OEM can reduce its CO2 footprint, using any technology is up to that respective OEM. The regulation should be technology-neutral, but the push for EVs from the government is so high that some OEMs are forced to take the leap into EVs, skipping the hybrid phase, even if the regulation doesn’t ask for it.  

Hybrid powertrains by Japanese OEMs
Japanese automotive companies, too, like Toyota and Honda, are introducing Indian buyers to hybrid powertrains, and Ghosh is of the opinion that this is a positive move due to the CO2 regulatory framework point of view. He avers, “As the CO2 regulations get more strict from this year, OEMs have to introduce fuel-efficient powertrains into the market. The Japanese OEMs can’t launch EVs directly because their EV products could be too expensive for the Indian market. Hence, the hybrid technology seems like a good fit at the moment. That’s because it’s not very costly, the technology isn’t very complicated, and moreover, it helps in CAFE compliance.” 

Toyota, Ford and India
Japanese companies like Toyota clearly have a set vision on the place hybrid powertrains make for themselves in India. Also, while Toyota is looking to manufacture EV parts in India, Ford, on the other hand, has chosen not to manufacture electric vehicles in India. The reason for Toyota's move is because it has plans to make India a manufacturing hub for electric vehicle parts to meet demand locally as well as for export to Japan and some ASEAN countries. As for Ford, the company said it was working on the business restructuring and continues to explore possible alternatives for its manufacturing facilities. These are two extremely contradicting steps at the same time from two multinational automotive companies for India. 

Sharing his views, Ghosh says, “Ford’s decision was a strategic decision to close down its sales operations in India, given they were not doing well in the country and were not profitable here. They did not capture any of the segments, unlike Toyota, which is very strong in its Innova and Fortuner segment. Toyota has been almost unshaken in its turf for the last 10 to 15 years.” 

He further shares that the two companies – Ford and Toyota – are, in fact, not really at two extreme ends. “Where Toyota has plans to make India a manufacturing hub for electric vehicle parts to meet demand locally as well as for export to Japan and some ASEAN countries, its strategy is about efficient capacity utilisation of the Indian facilities, ” Ghosh says. He continues, “As for Ford, they did not see enough potential in the Indian market and hence, believed that it was better to exit and instead focus on other core markets. Ford now has some plans for EVs that are very North American or European-oriented. Thus, these plans do not suit the Indian environment. So, I don’t think their exit affects the Indian ecosystem in any way. Toyota already exports a lot of ICE technology components from India to ASEAN countries, South America etc. using the Indian facility as an export hub. So now, they are introducing more components to their already existing basket of exports.” 

Making a strong domestic demand
From Japan’s involvement in India’s hybrid powertrains to several Indian EV leaders making strides in the sector, do we see India turning into a manufacturing hub for electric powertrain vehicles in the future? “Looking at China right now, India is too small to be compared with them from the perspective of scale of EV operations,” Ghosh responds. He further states that we have to build a scale comparable to China, and for that, there has to be a very strong domestic demand first. “We cannot supply to the world unless we supply to India,” he says. “Additionally, the Indian OEMs have to make sure that the domestic demand does not go to anybody else. In this case, the manufacturers in India will have the confidence to spread out geographically and sell to the other markets. However, for all of this to become a strong reality, the degree of investment required is not there yet. There must be investments in R&D capabilities, sales and manufacturing setups, charging infrastructure facilities, along with strong support from the government. The government has announced some PLI schemes and policies, which, if implemented, will make things start moving a little faster. There are some OEMs that are very aggressive, like Tata Motors. But despite that, the volume or numbers we have in mind is miniscule as compared to where the Chinese market stands,” Ghosh shares. 

If there’s a demand, there’s a market
Environmental concern is a real thing and electric vehicles are better for the environment. In spite of the future being an electric one, there is a strong demand for diesel vehicles in the luxury car market. This is perhaps because there's still a lot of time before India turns completely electric.

Companies, like Mercedes, for example, still provide diesel and petrol powertrain car models. However, selling diesel cars is not a problem at all if there is a market for it and if those cars comply with market regulations, Ghosh opines. Also, the sale of diesel cars is not limited to the luxury segment; some segments have a natural demand for diesel cars – for example, the taxi segment, small commercial vehicles or small trucks. “Therefore, irrespective of the segment, there are diesel cars in the market and they will exist so till at least 2027 or 2028, when BSVI ends and the next regulation comes in,” Ghosh informs. 

The EV battery supply chain race
Ghosh further highlights that electric cars are always priced at a premium and manufacturers themselves have a constraint on the production. “That’s because the battery supply chain comes into the picture,” he adds. “Around 20 million two-wheelers are sold in India annually. If we decide to replace all these 20 million two-wheelers with electric two-wheelers, then the manufacturers will not be able to produce that much as they do not have control over the battery supply. The battery supply is highly constrained at the moment. So, all the manufacturers are in a race to acquire key elements in the EV battery supply chain.” Giving an example, Ghosh adds, “For instance, automakers like Tesla and VW are looking for partners in the mining sector as they want to have more control on the supply chain of EV batteries.” 

Taking it at a gradual pace
Hence, the race is not about making a vehicle and selling it, but has gone beyond that. While everyone wants to sell an electric vehicle, we must ask, “do we have the batteries to manufacture them?” Moreover, once EVs become mainstream, all the facilities, manufacturing setups, the human resources directly involved with the auto industry and indirectly involved (like the service, insurance, workshop industry etc.) will need to adapt. “Therefore, looking at it holistically, a gradual pace works best, especially for an emerging economy like India,” Ghosh asserts.  

A green future
As we look at a future of powertrain and electrification, India certainly has a potential to be a hub for electric powertrain vehicles. It’s true that as we look at electrification as the future of India’s transport, the challenges haven’t stepped aside. But these are nothing that can’t be solved. With the right clarity on where the electric vehicle market in India is heading, strong localisation and the correct investments, electrification can be a boon for India like never before. Where we see several auto companies making strides in the sector, from Hyundai Motor Co working on developing a small electric car for India to ElectricPe (a new energy infra start-up) forming a strategic alliance with Hero Electric to set up an extensive EV charging infrastructure in the country, Indian transportation looks nothing but green. (MT)

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PepsiCo India has announced the expansion of its green logistics network through three integrated initiatives aimed at reducing supply chain emissions. The centrepiece of the rollout is the launch of a dedicated EV Green Corridor on the Kosi-Pataudi route, developed in partnership with Kalyani Powertrain, a subsidiary of Bharat Forge.

The Kosi-Pataudi corridor will utilise eight 32-feet single-axle re-powered electric container trucks. This initiative is expected to cover approximately 480,000 electric kilometres annually. The model incorporates dedicated charging infrastructure, route optimisation and vehicle customisation to support linehaul freight.

Beyond the corridor, the company has implemented the following measures:

• Distributor Electrification: More than 400 distributor-linked vehicles have been converted to electric three-wheelers and four-wheelers for last-mile delivery.
• Urban Logistics: Over 80 CNG vehicles have been deployed in the National Capital Region (NCR) through logistics partners to lower the environmental footprint of urban distribution.

The initiatives were inaugurated in the presence of Laxmi Narayan Chaudhary, Cabinet Minister for Sugar Industry and Cane Development, Government of Uttar Pradesh. The project involves a ‘Partnership of Progress’ approach, coordinating with original equipment manufacturers (OEMs), finance providers and logistics firms including Vayudoot Road Carriers and New Trishul Transport Services.

Jagrut Kotecha, CEO, PepsiCo India & South Asia, said, "At PepsiCo India, sustainability is embedded in how we operate and grow. The launch of the EV Green Corridor on the Kosi-Pataudi route, together with the electrification of our distributor fleet and CNG deployment in NCR, reflects our commitment to building a supply chain that is cleaner, more efficient, and future-ready. Through our Partnership of Progress approach, we have brought together the right partners across technology, logistics, infrastructure, and finance to make this a reality. We believe this kind of ecosystem collaboration is what it takes to drive lasting change, not just for PepsiCo, but for the sector."

Pankaj Sonalkar, MD, Kalyani Powertrain, said, “This initiative demonstrates how electric vehicle technology can be effectively integrated into commercial logistics operations when supported by strong ecosystem collaboration. At Kalyani Powertrain, we remain committed to developing innovative and reliable mobility solutions that enable businesses to transition toward cleaner, more efficient transportation while supporting India’s broader decarbonization goals.”

Laxmi Narayan Chaudhary, added, “Initiatives like these reflect how industry can grow while remaining mindful of the environment. The Government is strongly focused on promoting electric mobility and encouraging cleaner modes of transportation, and this initiative is well aligned with that vision.”

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  - NEW TRISHUL TRANSPORT March 18, 2026 21:21 PM

  Great initiative and futuristic approach of pepsico and it’s team, Green india clean india.

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Audi has confirmed plans to introduce a new all-electric entry-level model, the A2 e-tron, which is scheduled for a global debut in the fall of 2026. This new addition to the lineup represents a strategic move to establish a presence in the compact class with a fully electric family of vehicles. Production of the A2 e-tron is slated to take place at Audi’s primary facility in Ingolstadt, reinforcing the manufacturer's dedication to evolving its domestic production capabilities. An initial design sketch has provided a glimpse of the vehicle's profile, hinting at its modern aesthetic.

The announcement was made by Audi CEO Gernot Döllner during the company’s Annual Media Conference, marking a significant step in the brand's journey towards an all-electric future. The decision to launch the A2 e-tron is a response to the expanding market for compact electric cars, particularly within major European urban centres. The model is designed to appeal to an international audience, with a focus on delivering a blend of practical city functionality, environmental sustainability, high energy efficiency and advanced digital features. It aims to make the brand more accessible and appealing to a new generation of customers seeking a contemporary entry point into premium electric mobility.

The choice of the A2 e-tron name is a conscious tribute to the original Audi A2, a vehicle celebrated for its forward-thinking approach to efficiency and urban transportation more than two decades ago. This new model seeks to continue that legacy, adapted for the current era of electrification. The vehicle will be a key component in refreshing and expanding Audi's lineup, which following a substantial rollout of new models in 2024 and 2025, is already one of the newest in the industry. This momentum is set to continue in 2026, with the A2 e-tron strategically positioned as the new entry point, complementing the full-size Audi Q9 at the upper end of the market. The upcoming premiere of the A2 e-tron will offer the first complete look at this new compact electric vehicle.

“We’ve listened. Our customers want electric mobility that impresses in everyday life. The A2 e-tron is our promise to deliver exactly that – efficient, compact and confident. We’re making entry into the electric Audi world easier and more relevant than ever. The A2 e-tron is crucial for our brand and also for our German home. With the production of an additional fully electric model family in Ingolstadt, we are securing jobs and delivering electric mobility ‘made in Germany’,” said Döllner.

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BYD India has announced the opening of bookings for the Sealion 7 First Anniversary Edition, a performance electric SUV. Reservations commenced on 17 March 2026 with a booking amount of INR 70,000.

The Sealion 7 is available in two variants – Sealion 7 Premium (82.56 kWh) at INR 4.94 million and Sealion 7 Performance (82.56 kWh) at INR 5.49 million. The first 1,100 customers who book by 30 April 2026 will receive an 11 kW home charger with installation and two years of free maintenance. This edition also features an 8-year or 150,000 km warranty on the Lithium Iron Phosphate (LFP) Low Voltage Battery, alongside a standard 8-year or 160,000 km warranty on the high-voltage battery.

The SUV utilises Cell-to-Body (CTB) technology, where the Blade Battery serves as a structural component of the chassis. It also features Intelligence Torque Adaptation Control (iTAC) to manage driving dynamics.

Performance and range figures (NEDC) include:

• Performance Variant: zero to 100 kmph in 4.5 seconds; 542 km range.
• Premium Variant: zero to 100 kmph in 6.7 seconds; 567 km range.

The exterior features ‘Ocean X’ styling, while the First Anniversary Edition introduces a Tahiti Blue interior. The cabin is equipped with a 15.6-inch rotating touchscreen, a 12-speaker Dynaudio system and Vehicle-to-Load (VTOL) capability, allowing the car to power external devices.

Since its introduction at Bharat Expo 2025, the Sealion 7 has recorded sales exceeding 2,500 units in India.

Rajeev Chauhan, Head of Electric Passenger Vehicles Business, BYD India, said, “The BYD Sealion 7 represents the next generation of performance electric SUVs, combining advanced technology, distinctive design, and everyday practicality. The First Anniversary Edition celebrates this journey while bringing additional value to our customers. With exclusive benefits for the first 1100 customers only and enhanced ownership advantages such as the 8-year Low Voltage Battery warranty, we aim to make premium electric mobility even more compelling for Indian consumers.”

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Bengaluru-based electric vehicle manufacturer Ather Energy has announced the expansion of its service network to 500 authorised centres nationwide. The company nearly doubled its service footprint in the 2026 fiscal year, increasing from 277 to 500 locations in alignment with its retail growth.

The expansion includes the deployment of Gold Service Centres, which feature standardised lounges and maintenance equipment. To reduce turnaround times, the company has implemented the ExpressCare initiative at 82 centres, allowing for periodic maintenance to be completed within 60 minutes.

Ather’s service network now covers Tier-1, Tier-2, and emerging cities, supporting the Ather 450 performance range and the Rizta family scooter. The company plans to increase its retail presence to 700 Experience Centres by the end of FY2026, up from 600 centres recorded on 31 December 2025.

Furthermore, as of 31 December 2025, the Ather Grid consists of 4,357 fast-charging points and neighbourhood chargers. This infrastructure is intended to provide comprehensive support for the increasing user base across India.

Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said, “Crossing 500 service centres is an important milestone as we continue to scale our retail footprint and customer base across the country. From the early days, we have focused on building service capacity alongside sales because reliable after-sales support is a core part of the overall ownership experience. As our presence grows, having a strong service network becomes even more critical. Our focus is on ensuring that riders have access to trained technicians, transparent processes, and consistent service quality wherever they are.”

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