Global Headwinds Contrast with India’s EV Upside
While EV sales falter in the US and face stiff competition in Europe, India’s EV market is showing robust double-digit growth, attracting fresh investments from both global and domestic automakers. Government incentives, rising adoption, and strategic expansion plans are positioning India as a potential global EV supply hub, even as subsidies taper. Analysts expect penetration to rise steadily, supported by declining battery costs and improving technology.
Global Context
- Honda announced a $15.7 billion write-down on EV investments, joining Stellantis, Ford, and GM in reporting over $60 billion in global EV write-downs.
- US EV sales fell 2% to 1.28 million units in 2025, adoption at ~8%.
- Europe grew 17% to 3.65 million units, penetration at 16%, but faces rising competition from Chinese automakers (BYD, Leapmotor, Jaecoo).
India’s EV Market
- 2025 sales: 177,000 units (+77% YoY); penetration rose from 2.4% to 4% of 4.5 million passenger vehicle market.
- Government support: ₹25,000 crore PLI scheme, 5% GST on EVs vs. 18–40% on ICE vehicles, plus state-level incentives.
- Effective benefits cover 35–60% of EV price, according to industry executives.
Automaker Strategies
- Honda: ₹1,200 crore investment at Tapukara plant; first BEV (Honda 0 α) due in H2 FY26–27.
- Renault: India to become global production hub; four new models by 2030, including EVs and hybrids.
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