The need for strengthening India’s EV supply chains
India's electric vehicle (EV) market is experiencing significant growth, with 2.5 million vehicles sold in FY26. However, this growth has led to increased dependence on imported lithium-ion batteries, primarily from China, raising concerns about strategic vulnerabilities. To ensure sustainable EV adoption, India must focus on supply chain resilience, strategic autonomy, and diversifying battery sourcing.
- ▪India sold around 2.5 million electric vehicles in FY26, reflecting strong policy support.
- ▪The country is becoming increasingly dependent on imported lithium-ion batteries, particularly from China.
- ▪Only 1 GWh of the 40 GWh battery production capacity awarded under the ACC scheme has been installed so far.
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| Original publisher | The Hindu — Top |
| Canonical URL | https://www.thehindu.com/news/national/the-need-for-strengthening-indias-ev-supply-chains/article71054252.ece |
| Publication time | Wed, 03 Jun 2026 18:09:17 +0530 |
| Retrieval time | 2026-06-03T12:47:07.630Z |
| Last seen | 2026-06-03T12:47:07.630Z |
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Opening excerpt (first ~120 words) tap to expand
India’s electrification of road transport has entered a decisive growth phase. Around 2.5 million vehicles were sold in FY26, a significant increase from FY25. This momentum reflects the effectiveness of policy support from both the Centre and the States, including upfront purchase incentives, road tax exemptions, registration charge waivers, and other demand-side interventions. These measures helped create the initial market, reduce consumer hesitation, and establish electric vehicles (EVs) as a credible and tested technology.Import dependenceThe next phase of EV adoption demands a different policy and industrial logic. As the sector scales, India is moving away from imported fossil fuels, only to find itself becoming increasingly dependent on imported lithium-ion batteries.
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