‘Make in India’ and the Future of Electric Cars

June 10, 2025 | Business & Environment

Electric vehicles (EVs) have emerged as a powerful solution to curb air pollution, especially in densely populated urban centers. By replacing traditional fuel-based vehicles, EVs significantly reduce greenhouse gas emissions—particularly when powered by clean energy sources.

Although there are concerns that charging EV batteries with electricity generated from coal or natural gas may still contribute to pollution, overall, the lifetime emissions of EVs remain far lower than those of petrol or diesel vehicles. Even with emissions involved in manufacturing and battery production, EVs offer a more sustainable transportation solution in the long run.
Clean Air and a Cleaner Future

In cities like Delhi and other major metros—where air quality is severely impacted by vehicle emissions—EVs can play a vital role in improving the urban environment. When combined with a shift towards renewable energy, smart grid systems, clean battery production, and effective recycling mechanisms, electric mobility can be a game-changer for India’s climate goals.
India’s Booming EV Market

According to multiple reports, India's EV market is projected to reach $250 billion by 2030, a steep rise from $1.45 billion in 2021 and $3.21 billion in 2022. With more than 1 million EVs sold last year alone, the industry is witnessing exponential growth. Most major Indian car manufacturers are now launching electric variants of their top-selling models.
Tesla's Uncertain Entry and India’s New EV Policy

For years, speculation surrounded American automaker Tesla’s plans to manufacture in India. Tesla had reportedly sought lower import duties to test the market before committing to local production. However, their inconsistent approach raised doubts about their commitment to "Make in India".

The Indian government, in response, has now made its stance clear: manufacturing in India is a priority. A new EV policy allows limited imports—up to 8,000 cars—at a concessional duty rate of 15%, but only for EVs priced above $35,000. Beyond this quota, the import duty jumps to 115%, a move designed to encourage local manufacturing and protect domestic players.
The Road Ahead

India's EV future relies not only on expanding the market but also on building a self-reliant manufacturing ecosystem. As global interest grows and domestic demand surges, the success of “Make in India” in the EV sector could set an example for sustainable industrial growth across the world.