Elon Musk is scheduled to visit India later this month, with reports suggesting that the Tesla CEO might unveil plans to establish Electric Vehicle (EV) manufacturing facilities in the country.
This anticipated announcement could significantly bolster India's aspirations of emerging as a prominent investment destination for the EV industry.
Nimish Trivedi, CEO and co-founder of Prakriti E-Mobility, highlighted India's growing prominence in the EV market, projecting it to capture a substantial share of the automotive sector and generate significant revenue by 2030. He emphasized that the concerted efforts of the US and Europe to curtail Chinese EV imports could present lucrative opportunities for India's burgeoning EV industry.
Reports also indicate that Elon Musk is exploring the prospect of forging a joint venture with Reliance Industries, further underscoring the potential for collaboration between Indian and international stakeholders in the EV sector. Musk is expected to hold discussions with Prime Minister Narendra Modi during his visit.
These developments coincide with US Treasury Secretary Janet Yellen's recent visit to China, where she cautioned against overproduction of EVs, citing the adverse impact on global markets. This warning, coupled with the possibility of US tariffs on Chinese EV imports, positions India favorably to capitalize on shifting dynamics in the EV landscape.
Nimish Trivedi outlined the opportunity for Indian EV exports to gain traction in the US market as Chinese EVs become less competitive. He also highlighted the potential for Indian EV companies to expand domestically amid reduced competition from Chinese counterparts.
The escalating demand for EVs worldwide, driven by environmental concerns and fluctuating fuel prices, further reinforces India's potential as an export hub for EVs. Notably, sales figures for electric two-wheelers and four-wheelers surged in 2023, reflecting growing consumer interest in EVs.
Despite the promising outlook, experts caution that geopolitical tensions with China could pose challenges to India's ambitions as an EV hub.
Gunjan Singh, an Associate Professor at OP Jindal Global University, highlighted the risk of supply chain disruptions stemming from unresolved territorial disputes between India and China. However, she noted that India's strategic position and burgeoning market could mitigate some of these concerns.