Discussing the company’s future, Bhargava stated that long-term financial projections, which previously targeted doubling turnover to approximately Rs 1.68 lakh crore by 2030-31 and achieving an annual production of 4 million units, will be revised. The company is currently finalizing these updated forecasts. He also clarified that the second quarter financial results do not yet fully capture the effects of the GST reduction, and a substantial upturn in sales volumes is expected in the latter half of the fiscal year.

The expansion plan includes a significant Rs 35,000 crore investment in a new plant in Gujarat. This facility will be Maruti Suzuki’s fifth manufacturing base. The positive sales trend is already evident, with the entry-level small car segment, including models like the Alto K10, S-presso, Wagon R, and Celerio, seeing its retail sales contribution rise to 20.5% post-GST, up from 16.7% previously. This resurgence highlights the enduring appeal of affordable mobility in the Indian market.

The Rhodium report anticipates electric car demand in India to range from 400,000 to 1.4 million units by 2030, exceeding production capacity. This surplus suggests significant EV exports. Achieving this requires Indian companies to lower costs to compete with major players like China and secure a place in the global market.

The government’s ‘Make in India for the World’ initiative is gaining traction in the EV sector. Major companies like Tata Motors, MG Motor, and Mahindra Motors control approximately 90% of the domestic EV market. To succeed globally, India must focus on cost competitiveness and technological advancements. China’s advantage in producing low-cost, high-volume EVs necessitates Indian companies to improve technology, scale up production, and adopt cost-reduction strategies to remain competitive in the international arena.

By 2030, India’s EV production capacity could reach 2.5 million units, establishing it as the fourth-largest global EV manufacturer, surpassing Japan and South Korea. Japan’s current capacity is approximately 1.1 million units, and South Korea’s is around 500,000 units, with both countries’ future plans still developing. In contrast, India is experiencing rapid growth, with current production at 200,000 vehicles and a 300,000-unit capacity soon to be operational. Furthermore, factories are being constructed for 1.3 million units, and new projects for 700,000 units have been announced, indicating the sector’s rapid expansion and potential to outpace other nations.

India has adopted a strong approach to boost electric vehicles, actively engaging in all aspects from manufacturing to sales. The government provides subsidies to consumers to lower EV costs and mandates domestic manufacturing. Incentives are offered to battery and component manufacturers to increase local production. Emphasis is placed on improving charging infrastructure, and high import duties, ranging from 70% to 100%, are imposed on fully assembled foreign EVs, making direct sales in India expensive. This policy has resulted in almost all electric vehicles in India being produced by domestic companies.

India has also made rapid progress in battery manufacturing. The nation has become one of the few countries where the manufacturing of both battery cells and modules is increasing. It is estimated that by 2030, India’s battery cell manufacturing capacity could reach 567 gigawatt-hours (GWh). This would rank India fourth globally, after China (4,818 GWh), the United States (1,169 GWh), and Europe (997 GWh), and ahead of countries such as Korea, Japan, and Malaysia. However, the Rhodium report cautions that India’s rapid growth is largely based on projects that are under construction or only announced, posing a risk if these projects are not completed on time.

On the other hand, India lags in EV adoption. In Vietnam, EV adoption jumped from 3% in 2022 to 17% in 2024. In India, electric car sales were only 2% in 2024, indicating that while the Indian EV market is large, certain factors must be addressed to succeed. Clear and consistent government policies are needed to build consumer trust. Additionally, vehicle prices and manufacturing costs must be reduced to make EVs more affordable. Ultimately, a positive user experience, from driving to charging, is crucial for the growth of India’s EV industry.