Struggling with costs, supply gaps and weak infrastructure, global automakers hesitate on India’s ambitious electric vehicle transition.
Global automobile majors such as Renault, Nissan, Volkswagen and Skoda are treading cautiously on India’s electric vehicle (EV) market, despite government efforts to position the country as a global EV manufacturing hub.
EV penetration in India remains limited at just 2.7% of overall passenger vehicle sales in FY25, with growth hampered by high costs, limited charging infrastructure and dependence on imports for critical components like battery cells. At present, India has around 25,000 public chargers, though nearly half remain non-functional, highlighting significant gaps in the ecosystem.
While domestic players like Tata Motors and Mahindra are pushing ahead with electric vehicle plans, global brands are prioritising conventional fuel vehicles. Renault has delayed the launch of its Kwid EV, while Skoda has put its EV plans on hold. Volkswagen, which had planned to roll out its ID.4 electric SUV, has also deferred local manufacturing. Nissan’s EV utility vehicle, introduced through its Thailand unit, remains limited in scale in India.
Industry executives highlight that localisation and supply chain hurdles remain key challenges. India still depends heavily on countries such as China and South Korea for battery cells, leaving it exposed to global disruptions.
Although the government envisions 30% electric vehicle penetration by 2030, industry experts caution that achieving even 15–18% will be a challenge. Until supply chain issues are addressed and charging infrastructure significantly improves, India’s EV transition may continue at a slower-than-expected pace.
