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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Two-wheeler industry veteran Roy Kurian has joined Revolt Motors as President. This marks the second innings for Kurian at Revolt Motors; he had previously held a brief stint in January 2023, before joining Montra Electric as its Chief Executive Officer.

Kurian is a seasoned C-suite executive known for his deep expertise in the automotive and mobility sectors, specialising in business turn-arounds and scaling operations, particularly within the electric vehicle (EV) landscape.

He spent over a decade at India Yamaha Motor from 2007 to 2019, growing to the ranks of Senior Vice-President Sales Marketing. He had joined Tork Motors in 2019 spending over a year at the electric motorcycle company before joining Ampere Electric Vehicles as COO and Executive Director Electric Mobility.

In his new role, he will lead RattanIndia Enterprises-led Revolt Motors, which has been focussing on expanding its market share in the electric two-wheeler space.

For CY2025, Revolt MotoCorp has sold around 8,164 electric two-wheelers as compared to 9,955 units in CY2024. At present, Revolt MotoCorp’s product portfolio includes – Revolt RV1, Revolt RV1+, Revolt BlazeX, Revolt RV400BRZ and Revolt RV400 in the electric motorcycle segment.

conventional two-wheeler leadership at a major international brand, followed by a concentrated pivot into high-growth, executive roles across the Indian EV ecosystem, culminating in multiple tenures as CEO and President. He possesses proven skills in executive management (CXO), strategic sales, marketing, and operational leadership.

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Refex Mobility, the clean mobility arm of the Refex Group, has launched its operations in Delhi NCR, committing to fast-track clean corporate transportation in the region. The launch event was attended by the Union Minister of New and Renewable Energy, Prahlad Joshi, along with other dignitaries.

The company plans to deploy over 400 new four-wheeler clean-fuelled vehicles in Delhi NCR within the next three months, enhancing its presence across India.

Refex Mobility is looking to use its Delhi NCR launch as a springboard to scale into Tier-1 and Tier-2 cities nationwide. The firm currently operates a fleet of over 1,400 all-electric four-wheeler vehicles across Chennai, Bengaluru, Hyderabad and Mumbai, serving more than 70 leading corporates from sectors including BFSI, IT/ITES, e-commerce and telecom. The company, supported by over 200 employees, has already abated 3.5 million kilograms of tailpipe CO2 emissions since its inception.

Union Minister Prahlad Joshi commended the company's initiative, emphasising the need for solar-powered EV fleets: “Under the visionary leadership of Prime Minister Narendra Modi, India is advancing rapidly towards clean energy and sustainable mobility. To truly unlock the promise of electric vehicles and smart energy-efficient transportation, we must ensure they are powered by the sun. I urge corporates to lead the way by adopting solar-based charging for their EV fleets, thereby reducing oil imports, cutting emissions, and building greener, healthier cities in line with their ESG commitment.”

Anil Jain, Chairman & Managing Director, Refex Group, said, "Delhi NCR is not just an expansion for us but it is a commitment to scale. Within a couple of quarters, we will create one of the largest corporate clean-mobility fleets in the region. At Refex, we believe in diversification with responsibility, and Green Mobility is one of the most critical pillars of our sustainability journey."

Anirudh Arun, CEO, Refex Mobility, added, “At Refex Mobility, we are reimagining what reliable and responsible mobility means for India. Our promise is built on three pillars - dependable fleets that corporates can count on, exceptional experiences for every rider, and a deep commitment to sustainability and our driver partners. With our entry into Delhi NCR, we are proud to bring this ethos to the capital, as we continue shaping a cleaner and more trusted future for urban mobility.”

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Yuma Energy, one of India's fastest-growing Battery-as-a-Service (BaaS) providers, has announced a major partnership with Hindustan Petroleum Corporation (HPCL) to rapidly scale its battery swapping network across the country. HPCL is one of India's largest energy companies, boasting a vast network of over 24,000 retail outlets.

By leveraging HPCL's extensive footprint, Yuma Energy aims to gain a strategic advantage, allowing it to deploy its AI-driven battery swapping stations in high-demand locations – from major metro areas to Tier-2 towns.

This move aims to give riders, delivery fleets and businesses instant and reliable energy access that is as quick as traditional refuelling.

Yuma Energy will use HPCL's retail network to deploy its ‘Yuma Stations’ strategically based on real-time demand. This demand-responsive model ensures that EV users – including e-rickshaw drivers, gig-economy partners, and commuters – are always close to a fully charged battery.

The partnership directly addresses the key challenge of energy network infrastructure that needs to keep pace with India's accelerating EV adoption, particularly in the two- and three-wheeler segments. For HPCL, the alliance allows the company to diversify its business into future-ready energy solutions.

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Kinetic Green Energy and Power Solutions has introduced the E-Luna Prime, an electric two-wheeler designed for India's commuter motorcycle market. The new model builds on the success of the E-Luna, which has sold over 25,000 units since its launch.

The E-Luna Prime, the company shared, is engineered to meet the needs of millions of commuters, offering an affordable and practical solution for both urban and rural environments. It features rugged 16-inch alloy wheels, a digital cluster and a spacious front-loading area. The electric two-wheeler is available in two variants with ranges of 110 km and 140 km, prices starting at INR 82,490 (ex-showroom).

According to Kinetic Green, the E-Luna Prime offers significant savings compared to conventional petrol-based motorcycles. The total cost of ownership is estimated at just INR 2,500 per month, which includes the EMI and running expenses. This is a fraction of the estimated INR 7,500 monthly cost for a traditional ICE two-wheeler, potentially saving consumers up to INR 60,000 annually.

Dr Sulajja Firodia Motwani, Founder & CEO, Kinetic Green, said, "We are delighted to unveil the E-Luna Prime, that embodies our commitment to transforming the future of personal mobility in India. Building on the resounding success of our E-Luna series, which has garnered widespread acclaim from thousands of satisfied customers, the E-Luna Prime represents a significant leap forward in our pursuit of innovation and customer-centricity."

Dr. Motwani added that extensive consumer research revealed an opportunity to create "India's most affordable yet aspirational mobility solution for the fastest growing commuter motorcycle segment." She stated, "The E-Luna Prime, with its industry-leading features along with the winning proposition of INR 2,500 monthly ownership cost, exemplifies our commitment to address the evolving and unmet customer needs by leveraging cutting-edge electric vehicle innovations."

The E-Luna Prime is available in six colours and will be sold through Kinetic Green's network of over 300 dealerships across the country.

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