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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Youdha has expanded its vehicle lineup into the commercial cargo segment with the introduction of the ePod G electric three-wheeler.

Designed for last-mile logistics, e-commerce deliveries and retail distribution, the electric three-wheeler expands Youdha's ePod platform from passenger transport into goods mobility.

The ePod G features an 11.8 kWh lithium iron phosphate battery and a 6 kW three-phase permanent magnet synchronous motor. The powertrain delivers a claimed range of 170 to 180 km under standard test conditions, a payload capacity of 545 kg and a gross vehicle weight of 1,000 kg. The e3W has a top speed below 50 kmph, 22 percent gradeability and a charging duration of four to five hours.

Ayush Lohia, CEO, Youdha, said, "Our ambition is to build ePod into a trusted name across passenger and goods transportation. The positive response to our passenger vehicle gives us a strong foundation to extend the range into cargo. With ePod G, we aim to address the needs of businesses and individual operators involved in last-mile deliveries while continuing to strengthen Youdha’s product portfolio and market presence."

The ePod G will be available in half-deck and closed box configurations to accommodate varied delivery requirements. Built on a monocoque chassis, the vehicle includes hydraulic brakes, steel rims, 120/80-R12 8PR tyres, LED headlights, and a seven-inch CAN-enabled digital LED instrument cluster. The launch enables Youdha to supply individual owner-operators, commercial businesses, and delivery fleet managers across the Indian market.

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Tesla has opened online reservations for the new Roadster in select global markets, including India, with production scheduled to begin in 2028 for left-hand drive configurations. Alongside the reservation announcement, Tesla India has also introduced a complimentary Acceleration Boost for its Model Y L six-seater SUV.

The new Roadster design incorporates aerospace-inspired elements and SpaceX components. In the domestic product lineup, the Model Y L SUV receives an Acceleration Boost software update, reducing its zero-to-100 km/h acceleration time to 4.5 seconds while offering an operating range of up to 681 kilometres under WLTP testing standards.

Tesla currently offers the Model Y and Model Y L in India. The entry-level Model Y is priced at INR 5.08 million, while the Model Y L starts at INR 6.19 million. The EVs carry safety evaluations from global testing bodies, including NHTSA, Euro NCAP, ANCAP and C-IASI.

To support vehicle ownership, Tesla's domestic charging infrastructure comprises 20 Supercharger stalls and 28 Destination Charger stalls, with three additional sites planned by the end of 2026.

Home charging setup has been established for owners across 23 Indian states. The manufacturer has also introduced its Refer and Earn program in India, offering purchase discounts for buyers and referral credits for existing owners.

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VIDA, the electric mobility brand powered by Hero MotoCorp, has unveiled the DIRT.E K3 6DAYS Limited Edition at the 100th FIM International Six Days Enduro in Grândola, Portugal.

The release marks the first collaboration between an Indian electric vehicle manufacturer and the event as an official partner of the Fédération Internationale de Motocyclisme.

The model is limited to 100 units, with each unit assigned a number corresponding to an edition of the event. The electric two-wheeler features Portuguese flag-inspired green and red livery, race competition typography and official 6DAYS branding.

First introduced in December 2025, the DIRT.E K3 is an electric off-road vehicle designed for youth riders. It incorporates a modular frame that adjusts without tools at three points, allowing handlebar height, footrest positioning, and seat height to be adjusted as the rider grows.

The DIRT.E K3 comes with a removable 360 Wh lithium-ion battery with a three-hour full charge cycle, three software-managed speed modes reaching up to 24 kmph via thumb throttle, a magnetic power cut-off kill switch and a 60 mm rear disc brake system.

Kausalya Nandakumar, CBO of the Emerging Mobility Business Unit, Hero MotoCorp, said, "Being part of the historic 100th edition of FIM ISDE is a proud milestone for VIDA and an opportunity to showcase how electric innovation can shape the future of off-road riding. The VIDA DIRT.E K3 brings together the spirit of motorsport with forward-looking technology, building on the recognition it received at CES 2026 and the Red Dot Design Award. With our Portuguese- inspired 6DAYS® Limited Edition, we are celebrating the legacy of this iconic event while bringing a fresh perspective to electric off-road mobility. At VIDA, we believe innovation should go hand in hand with a safe, engaging, and empowering riding experience for young riders."

Fabio Muner, Marketing and Digital Director, FIM, said, "On behalf of the FIM, I would like to sincerely thank Hero MotoCorp for its active participation in the 100th Edition of the FIM 6DAYS®. Thanks to the DIRT.E K3 6DAYS® Limited Edition bike, young riders have the chance to experience first-hand the beauty of motorcycling and enduro, an opportunity that is essential for building the future of our sport. The fact that these vehicles will be available on the market is a further great achievement for the FIM 6DAYS®. It is another example of how this historic FIM World Championship continues to widen its borders year after year, opening its doors to new generations and new ways of riding. Thank you, VIDA for sharing this vision with us."

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Epsilon CAM, one of the leading battery cathode active material manufacturers, and cell technology firm C4V have signed a Letter of Intent (LoI) to evaluate and qualify lithium iron phosphate and bio-mineralised lithium mixed metal phosphate cathode active materials.

The agreement establishes a framework to evaluate Epsilon CAM's cathode materials for cell-level integration across C4V's battery platforms and North American manufacturing programs, including those operated by sister company Near Prime Technologies.

As per the arrangement, Epsilon CAM will provide material samples and engineering data for testing, including electrochemical performance validation, cycle-life evaluation and process compatibility assessments. Subject to technical qualification and definitive contracts, the firms plan to explore multi-year material supply arrangements and technology integrations.

The evaluation will assess supply-chain sourcing for critical raw material inputs, including lithium, manganese and phosphorus, to align with North American content requirements.

Epsilon CAM is advancing plans for a 20,000-tonne-per-annum cathode active materials plant in India by 2028, positioning its production as a non-foreign-entity-of-concern source for global cell manufacturers.

Vikram Handa, MD, Epsilon CAM, said, "This LoI brings together complementary capabilities across cathode materials, cell technology and manufacturing. Our focus is to demonstrate material performance at the cell level and to work with C4V toward scalable, high-quality LFP and LMFP solutions that address the evolving needs of battery manufacturers and automotive customers."

Dr. Shailesh Upreti, CEO, C4V, said, "Epsilon is helping address one of the most important gaps in the U.S. battery supply chain: reliable access to scalable, ex-China phosphate cathode active materials. C4V is currently evaluating Epsilon’s materials through our Digital DNA qualification process for potential use across C4V cell platforms and U.S. manufacturing programs at Near Prime. Successful qualifications would create an important pathway connecting advanced cathode materials with C4V battery technology and domestic cell manufacturing."

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