India EV News: Government and Industry Updates

India EV News: Government goes slow on procurement; Himachal drafting EV policy; Mahindra and Ford new JV to focus on electric vehicles

The NRDC India EV News is a selection of news highlights about electric mobility in India.

National Government

Government goes slow on procurement of electric vehicles, limits sourcing


The governmentt is aiming for 6 million electric vehicles by 2020.

India’s largest electric vehicle (EV) procurement programme could come to a halt amid the economic slowdown, with state-run Energy Efficiency Services Ltd (EESL) planning to curb its sourcing to less than a third of the 10,000 sedans it originally tendered due to lack of demand.

EESL gave out a sourcing contract in September 2017 to Tata Motors Ltd and Mahindra and Mahindra Ltd. While 1,500 such EVs have been sourced so far, EESL now plans to limit the final order to around 3,000 vehicles by March 2020.

The change in EESL’s plan comes amid the worst slump in passenger vehicle sales in nearly two decades.

“I don’t think this EV procurement plan will continue going forward and maybe after March 2020, EESL will close the tender. In the tender it was mentioned that while 10,000 units was the overall allocation, vendors will only manufacture after a demand for the same was raised," said a person aware of EESL’s strategy, requesting anonymity. (…)

(Live Mint, 2 October 2019)

State Governments

Himachal Pradesh is drafting its EV policy to achieve 100% transition to EV by 2030

Earlier in September, the Himachal Pradesh government had announced that it is working on a draft electric vehicle policy with the aim to achieve 100% transition to electric vehicles by 2030.

The policy is said to propose incentives to EV batteries and related components manufacturers and disposals in the state. “The incentives shall be provided to eligible enterprises as per Himachal Pradesh Industrial Policy as applicable from time to time,” the state’s official release added. 

“The objective of the policy is to save the environment, accelerate demand for EVs, promote sustainable transport system and create public private charging infrastructure,” Chief secretary of the state Dr. Shrikant Baldi. (…)

(INC42, 17 September 2019)


India Charged to be Global Hotspot for Electric Mobility

Following a strong central government push towards EVs, India has the potential to become one of the largest EV markets in the world.

New analysis released by the World Economic Forum and the Ola Mobility Institute shows there are 10 states and UTs that are building momentum for EV usage in three sectors: manufacturing, infrastructure and services. Given India’s role as part of the global big four automotive players (alongside China, Japan and the United States), large-scale changes to the Indian market would affect the industry’s global footprint.

The report, EV Ready India - Part 1: Value Chain Analysis of State EV Policies, examines programmes and policies in Andhra Pradesh, Bihar, Delhi, Karnataka, Kerala, Maharashtra, Tamil Nadu, Telangana, Uttarakhand and Uttar Pradesh. It highlights the opportunities for the sector and builds a common framework for analysing state EV policies through trend analysis of value chains. (…)

(India Economic Summit, 03 October 2019)

Mahindra to lead Ford's India operations; new JV to focus on electric vehicles

Anand Mahindra, Chairman, Mahindra Group along with Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd and Jim Farley, President of Ford New Businesses, Technology and Strategy at a press conference in Mumbai on October 1, 2019

Mahindra & Mahindra and Ford Motor Company have signed a definitive agreement to create a joint venture in India valued at $275 million (Rs 1,925 crore). The entity will develop, market and distribute Ford-branded vehicles in India.

Under the deal, Ford will transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. The American automaker will retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.

The entity is expected to introduce three new utility vehicles under the Ford brand, beginning with a new midsize sports utility vehicle that will have a common Mahindra product platform and powertrain.

Another area of focus for the joint venture will be electric vehicles. Ford and Mahindra will collaborate to develop vehicles to support the growth of sustainable mobility across emerging markets. (...)

(Business Today, 02 October 2019)

Poor charging infrastructure may delay launch of EV vehicles: Toyota Kirloskar

Toyota Kirloskar, according to newspaper reports, said that it is considering setting up a separate legal entity to manufacture electric and hybrid cars believes that poor charging infrastructure may delay the launch of such vehicles.

The automaker has also ruled out any plans to withdraw internal combustion engines in the country. In 2017, Toyota had tied up with Suzuki to offer affordable electric and hybrid small cars for the Indian market.

Currently, Toyota’s second plant at Bidadi near Bangalore is running at about 40 per cent of the capacity because of the slowdown in the auto sector. A newspaper report had said that the carmaker is looking at setting up a separate legal entity for the manufacture of hybrid and electric cars. (…)

(The Hindu Business Line, 25 September 2019)


Compiled by Charu Lata and Kriti Sehgal

Note: The linked articles and excerpts in this post are provided for informational purposes only and do not necessarily reflect the views or positions of the Natural Resources Defense Council.