By laksh5382 
India is expected to initially focus on hybrids and alternative fuels such as compressed natural gas (CNG) rather than moving rapidly towards full electrification by moving away from internal combustion engines (ICE). Electric Vehicle (EV) According to a report by S&P Global Ratings, production.
EV adoption in India will progress with model launches that will bring prices in line with ICE models and improved charging infrastructure.
S&P also estimates that hybrid and CNG-powered vehicles will gain meaningful market share alongside EVs, particularly in the light vehicle and passenger commercial vehicle segments. The shift from ICEs to alternative fuels is likely to lead to a more rapid transition to full electrification.
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Also read: Finmin’s report states that urban demand is showing weakness but rural demand continues to improve.
on government policies Import And foreign investment Will continue to play an important role in India’s EV journey. Over the next three years, the country is expected to rely on imports such as batteries to meet its EV production targets. The Indian government’s focus on boosting domestic EV production and localizing supply chains is key to achieving the target of 30 percent EV penetration by 2030, a report said.
As the world’s most populous country, India’s huge market potential is attracting substantial EV-related investments. We estimate that Tata and JSW groups alone will invest over $30 billion in the coming decade in making EVs and EV content, of which about $10 billion will be in SSEA (South and Southeast Asia).
S&P Global Ratings estimates rated carmakers will spend more than $20 billion on building EV production in the region over the next few years. This expansion is likely to strengthen the business position of some rated entities. For example, Chinese carmakers are using SSEA production to diversify their operations and customer base, while reducing competitive pressure domestically. This regional production also opens the door to exports to markets such as Europe, which impose high tariffs on Chinese-origin battery EV imports.
Meanwhile, Japanese carmakers are likely to see a gradual decline in market share as EVs challenge their dominance in light vehicle sales. However, due to their expertise in ICEs and fuel-efficient hybrids, they should maintain a strong market position in the near term. Japanese carmakers such as Toyota Motor Corp. and Honda Motor Co. Ltd. are capitalizing on their gains in hybrid vehicles, which will remain a popular option for consumers looking for fuel savings without the worry of limited charging infrastructure.
Korean carmakers are centrally located and are investing in SSEA to take advantage of the growth potential. By increasing production capacity in the region, they will be able to adapt faster to market demand, shifting between EVs and hybrids as needed. This strategy can help them deal with the challenges in China. Home to more than 2 billion people, the region has one of the lowest car ownership rates in the world. With growing economies, rising disposable incomes, ongoing urbanization and low levels of vehicle ownership, the SSEA is poised for above-average growth in auto sales over the next few years.
Electric vehicles (EVs) are expected to lead this growth in many of these markets. Government initiatives along with low lifecycle cost of owning an EV will help in increasing sales. The region is also seeing an increase in supportive policies to promote EV adoption and encourage local electric-car production.
Consumers in SSEA prioritize affordability and are often more receptive to new technologies and brands, providing a favorable environment for EVs. “We estimate that EV sales in the region will grow at a compound annual rate of more than 20 percent from 2024 to 2026,” S&P Global said.