Seminar by Prof. Sunil Mani

Driving Change: Government Strategies and Technological Innovations in India’s Electric Vehicle Manufacturing Sector

Prof. Sunil Mani
Visiting Professor CDS, Trivandrum and Ahmedabad University

Abstract
The Sectoral System of Innovation (SSI) framework is applied to analyse the evolution of  India’s electric vehicle (EV) industry, which has developed through three distinct phases: the early years, the growth period (2011–2020), and the current phase of rapid transformation (2021–present). Government policies such as FAME and NEMMP have been instrumental in driving industry expansion. The industry is built on four key pillars. Knowledge and technology development are advancing through indigenous capabilities in 11 critical EV technologies, supported by a robust R&D ecosystem, scientific publications, and patents, with emerging battery technologies such as solid-state, sodium-ion, aluminium-air, and hydrogen fuel cells gaining traction. Actors and networks include government agencies, private sector manufacturers, and battery producers, alongside startups such as Ola Electric, Ather Energy, and Ultraviolette Automotive, which are driving innovation in collaboration with universities, research institutions, and industry associations. Institutions play a crucial role in promoting domestic manufacturing and reducing import dependency through regulatory policies, while public-private partnerships facilitate EV adoption and the expansion of charging infrastructure. Demand and market dynamics are influenced by environmental awareness, fuel cost savings, and government incentives, although challenges such as high upfront costs, limited charging infrastructure, and range anxiety persist. Despite these hurdles, the two wheeler EV segment has witnessed substantial growth. Nevertheless, major challenges remain, including heavy reliance on lithium-ion battery imports, the need to scale up charging infrastructure, and public hesitancy towards EV adoption. Addressing these barriers requires strengthening local battery supply chains, increasing R&D investments in next-generation EV technologies, and expanding charging networks integrated with renewable energy sources. India’s EV industry is undergoing rapid transformation, and with sustained policy support and technological advancements, it is well-positioned for significant future growth.