Why India connt produce electrical cars like Tesla and others?

Agastya Motors

I'm CEO of an Electric Vehicle Technology Startup in India. (Agastya Motors).

There are many problems to start with,

  1. Batteries- (i)There are only two labs that are manufacturing Li ion batteries in India, which doesn't supply for commercial use as they supply to DRDO stuff. (ii) Using batteries available in India that were imported costs more than 6 times than real cost due to scarcity. But we are abe to find few more paths that can only be explored by us to get batteries at the economic cost of Indian market.
  2. Motors- There are some companies that are claiming that they are manufacturing motors for Electric Vehicle usage but trust me no one has a good production ability and are not even confident to expose their models to clients. Globally there are some manufacturing companies who has potentially strong ev motors but due to economic viability, they doesn't fit well in India. We found a way here too to make them fit well into Indian economic scenario.
  3. If someone who has to produce Electric Vehicles, it hasto be a new company or a startup like us because established companies do not like a immediate shift which cause damage to their conventional fuel model business. Mahindra has technology to build great electric cars yet they show you some ugly looking ev's because they can't risk revenue loss of present models. If you can check Mahindra has a Formula-E team(Fully electric racing).

We are set to release our first Electric sedan model in six months with great price tag, range and speed.

Stay tuned to AGASTYA MOTORS.


Everything wrong with the Indian EV scenario.

Electric mobility is one of the most happening sectors in Indian startup scenario these days. Every day, there's a new policy, product announcement or product launch. Startups like Ather energy, Twenty-two motors, Ampere vehicles etc and giants like Mahindra, Tata, Volkswagon etc are making news for EV.

Despite so much hype, there seems close to nothing on the ground. The EV sales are less than 1% of total vehicle sales. Mahindra electric posted a loss of 1.29 billion rupees against the revenue of about the same. Government employees rejected the EVs provided by Tata and Mahindra through EESL. There are flipflops on policies by the governments of states and union. The projections of EV sales is brought down to 30% in 2030 to 100% in 2030 within months, and that too is being criticised as a large number.

What is going wrong in Indian EV space? Let's check it out.

The obvious one, the infrastructure.

It needs no mention the EVs requires a fuel too, electricity, and fuel requires fuel stations. While most surveys created here and there say that people will charge the EVs mostly at home, it doesn't rule out the need for charging stations. While there is news of Stations coming, MoUs being signed, technologies being introduced but still the stations are far from the numbers required. Only a few tire-1 cities seem to be getting those stations in scarce numbers.

The chances are less that somebody is going to invest largely in Charging infra till a mass market is created and the reverse is also a problem, no sales if no infrastructure. While many of the international markets have made it possible, every market is not the same, and this does not seem to be working in India. Hence the stations are coming slowly, very slowly.

Is it the right time to go fully electric? Is the market ready to be fully electric?

Are all-electric vehicles the near future or far future? Or present?

It looks like India Inc. and the government wants to directly jump to fully electric cars from fully petrol/diesel/CNG run cars. India has not experienced the transition from carbon to electric it should have experienced which most of the "leading in electric race" countries in the world have experienced. It has not seen many hybrid vehicles. There were few launches of mild-hybrid vehicles but that too was stopped after GST was introduced and tax benefits were stopped. India has no series hybrid or plug-in hybrid vehicles till now but has many fully electric options.

The market seems to be not ready for electric vehicles in India presently, people are aware of the long charging times and short range of EVs and high costs of EVs. Plug in hybrid is the way ahead in India,it will create opportunities for charging station plus cost benefit over EVs and efficiency benefits over petrol/diesel and can run both on battery and petrol.

While there are going to be few launches in the hybrid section, like TVS iCube, more should come for the electric mobility in India to grow.

Is it time to be too futuristic or live in the present?

The startups are going too futuristic, that increases the complexity and cost. An Electric scooter with high range and low cost would sell more presently than a scooter with a touch screen, cloud connectivity and machine learning or whatever with high cost. The time is to get the basics right for the present, develop the rest for future.

Where will the growth and sustainability for companies and startups come from?

The simple answer to the question is growth will come from where the market is demanding.

From long the startups of India are ignoring the international markets. Is there a reason Ather s450 or 22motors Flow will not sell overseas?Whats wrong with Mahindra and Tata?They are already present in international market but no electric vehicles launched internationally (though Tata is yet to launch any publically in India too,its products are presently only limited to EESL and has no public launches till now) They are a viable option in the overseas market where EV market is growing at a good rate or has already grown. There is no cut-throat pricing in EU or USA and the charging infrastructure is developed. Mahindra electrics former name ,the Reva was already international but it was toned down to focus on India. While EESL got complains about less capacity of battery in Mahindra and Tata vehicles provided to it,they cited reasons for price control of their vehicles for the same.While the foreign markets don't need so much price cuts or has no tight pocket markets,like the 15000£ two seater uniti one is in fame, Its time for startups and companies to explore markets, if required with modifications.

The dust is not settling. What the government exactly wants?

The government policies are too dynamic. The projections keep changing too. The government aims. something else, its agencies differ, and so differ the automotive associations and companies. They all have different demands and projections.

The companies want a clear policy, while the government argues that with such innovative and dynamic products a single policy is not viable. The government is over-ambitious, the companies seem excess practical.

The EV market of India is anyways exciting and innovative. The ventures must think beyond just developing innovative products and r&d, it must make products for the tight pocket Indian market and must explore international options. The government must make a stable picture of EV policy in India so that the foreign companies get ready to invest.

Source- Everything wrong with the Indian EV scenario.


when it comes to Indian automobile market there are certainly numerous things to keep in mind...

  1. Indian customer wants a cheap car that gives better fuel economy (no doubt electric cars are far more efficient)
  2. urban as well as rural India is not constructed with the idea kept in mind for low rider and expensive cars (I'm talking about digged roads)
  3. when it comes to electronic vehicle Indian market has gone through it once a few years ago, a tough time it was.
  4. when it comes to production and maintainance, electric drive are expensive and a lot of research is being carried for improving battery capacity and efficiency none of which is carried in India.
  5. India do not have ample space and funding for installing recharge stations which are primary requirements.

As we all know crude oil is depleting and companies are carrying lot of research work in hybrid and complete electric drive, we are expecting this era in near future


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