Don't let China become an 'EV colony' in India, encourage people to use electric vehicles

It said the government should allow the domestic EV sector to flourish on its own with the aim of saving the country from getting converted into an 'EV colony' of China. Economic research institute Global Trade Research Initiative in its report said that India is confronting some fundamental and multi-dimensional challenges regarding large-scale EV adoption which few other countries confront.

These are a set of challenges: 80 percent of electricity is generated from fossil fuels such as coal, frequent power cuts, and dependence on imports for components needed to make EVs such as batteries and critical minerals in the country. GTRI said that considering these challenges, India has an opportunity to let its EV sector develop naturally rather than rushing into the fray with heavy incentives or relying on Chinese imports. Likely, a better approach is to enable market forces to shape growth in the sector so that India does not turn out to be an 'EV colony' for China and caters to a decent position in the global EV landscape.

The global EV market is in turmoil because of the high duties and restrictions imposed by the US, EU, and Canada on imports of EVs and parts sourced from China. With nearly half of China's global EV exports accounted for by these geographies, China, in a strategic turn, has shifted its production to ASEAN countries and is eyeing India.