Should we fear a car tsunami coming from India?

India has long been portrayed as a future powerhouse of electric vehicles, but is it already too late?

India is undeniably a major global automotive power, driven by ambitious projections and promising government initiatives. For about a decade, the global discourse has predicted an impending EV revolution in India. It is true that significant progress has been made. Domestic EV sales have soared, and the government is supporting their adoption through tax subsidies and the development of charging infrastructure. Additionally, local manufacturers like Tata and Mahindra are offering affordable models, making these vehicles accessible to an expanding middle class.

The case of Tata is interesting in this regard as the Indian giant acquired two iconic European car brands, Jaguar and Land Rover, from Ford in 2008. This strategic acquisition allowed Tata to strengthen its global presence and establish a foothold in Europe with an extensive sales and service network. But why not leverage this to sell its own vehicles there? We do not have the answer…

India in a Closed Cycle

Unlike global leaders who are betting on rapid technological advancements and aggressive export strategies, the Indian EV industry still appears largely focused on its domestic market. This raises a crucial question: does the scale of the local market, in this now most populous country in the world, not hinder India’s opening to the outside?

With a vast consumer base and a growing demand for EVs within the country, India can afford, for now, to prioritize its domestic market. Why invest heavily in exports when domestic sales are sufficient to support growth?

The coming years will be crucial in determining whether India can balance this internal potential with the ambition to become a global player in electric vehicles. In the meantime, this much-touted “Indian wave” seems more like a local ripple than a revolution on the international stage… for now.

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