The report highlights India's growing EV market potential, supported by over $11 billion in government incentives and a rapidly expanding battery infrastructure with more than 140GWh of manufacturing capacity
A new report from BNP Paribas suggests that India is on the cusp of becoming Asia's next primary electric vehicle (EV) hub, following in the footsteps of China’s significant impact on the global auto industry. Analyst Kumar Rakesh outlines India’s burgeoning potential and the factors contributing to its rise in the BNP Paribas India EV Report, May 2024.
The report provides an optimistic outlook on India's EV industry, noting that the country possesses the essential components to develop an internationally competitive market. The Indian government has been proactive, offering over USD 11 billion in manufacturing incentives to EV original equipment manufacturers (OEMs), suppliers, and battery cell producers. This support is complemented by a fast-growing battery infrastructure, with over 140 GWh of battery cell manufacturing plants announced.
The potential entry of Tesla into India could further catalyse the industry significantly. The report emphasises that all factors necessary for developing a competitive EV sector are aligning in India. Furthermore, a comparative analysis of OEM profitability reveals that manufacturing in India is surprisingly lucrative. A case study on Apple’s shift of production to India further underscores the country’s manufacturing appeal.