TL;DR
India's EV manufacturing is behind schedule, largely due to its dependence on imported battery components, raising costs and supply chain risks.
As India charts its energy roadmap, a significant concern emerges regarding the nation's electric vehicle (EV) manufacturing sector: it is currently lagging expectations. This shortfall is primarily attributed to a heavy reliance on imported components, particularly batteries and key battery raw materials. This dependency not only escalates costs but also introduces considerable supply chain risks, which in turn impedes the broader rollout of domestic battery production capabilities.
Despite plans for 200 gigawatt hours (GWh) of battery capacity by 2035, projections indicate that only half of this may materialize. Consequently, passenger EV penetration is expected to reach only 18% by 2035, highlighting the critical need for strategic alliances for raw material sourcing and increased investment in battery recycling and extraction technologies to foster a more self-reliant EV ecosystem.
