Revving up: Fuelled by PLI, Indian automakers eye global EV space, targeting Europe & other developed markets

Domestic auto makers are grabbing the export opportunity presented by a growing preference for cleaner mobility in developed markets, as well as government support, to supply electric vehicles (EV) at competitive costs.

Maruti Suzuki is set to start shipments of its first electric SUV to Europe early next year, while Hero MotoCorp is readying for launch of its VIDA V1 electric scooter in France, Spain and the UK over the next few months. TVS Motor, which is exporting electric scooter iQube to a few Asian countries, is preparing to head to the European Union.

With large-scale, developed EV supply chain and ecosystems, these companies are leveraging proven abilities in frugal manufacturing to sell in Europe, where electric is projected to account for a quarter of car sales this year.

“We should not look at just selling (EVs) in India. We should look at how India can sell EVs to the world,” Hero MotoCorp chief executive Niranjan Gupta had said during a recent interaction with ET.

The government is keen to develop India as an export hub for EVs.

On Par with Global Standards
India has a Rs 25,938-crore production-linked incentive (PLI) scheme to enable local automakers and component suppliers to compete overseas for clean mobility options, challenging Chinese dominance.

Beijing accounted for 68% of battery electric vehicles produced worldwide in 2023 and exports worth $34.1 billion.

While some EV makers have finalised plans to start exports, several others are weighing the option.

With its upcoming ‘Born Electric’ range, Mahindra & Mahindra is among those looking to enter the European market. The company, which has partnered Volkswagen for components from its MEB platform to develop a global EV portfolio, has said that it was looking to start e-vehicle exports to Europe in 2027.

Honda Cars India is developing a full electric version of SUV Elevate and plans to export it, industry executives said.

Commercial vehicle makers also see an opportunity in the export market for electric vehicles. Electric bus maker EKA Mobility is developing left-hand-drive variants with a focus on overseas markets.

With safety and emissions regulations in India currently at par with global standards, vehicles produced here are finding increased acceptance in international markets, said industry insiders.

Plans at Various Stages
Maruti Suzuki has plans to ship the “new EV and more products” made in India in the coming months, said Rahul Bharti, executive director, corporate affairs. “Today, most of the conversation on EVs is around facilitation of imports of parts or cars. Maruti Suzuki would like to reverse it and nurture an Indian ambition for EV exports from India. We are talking about meaningful volumes and that too to advanced markets like Europe or Japan,” he said.

TVS Motor exports the IQube to neighbouring Nepal and Sri Lanka, and the Philippines. “We strongly believe India will emerge as a major exporter of two-wheelers,” said its chief executive KN Radhakrishnan, citing “continuous improvement in the EV supply chain and infrastructure.”

Near-term, in addition to the iQube in a few EU countries, the company also plans to ship its latest electric offering, TVS X, to Latin America, the Middle East and Southeast Asia.

Pune-based EKA Mobility, which is one of the commercial vehicle manufacturers approved under the Champion OEM (original equipment manufacturer) PLI Scheme and is developing left-hand-drive models, is looking at starting exports from India in 2025.

“Eventually we want a significant percentage of our sales to come from export markets. We are investing heavily in R&D. And have products which can compete across the world,” said founder and chairman Sudhir Mehta.

The company has a partnership with Japan’s Mitsui and the Netherlands-based VDL Groep to manufacture electric buses and light commercial vehicles in India.

Japanese automaker Toyota Motor has yet to firm up plans to export electric vehicles from India. However, it is shipping high-end components, including e-drives, from here for its range of hybrids globally. The e-drive, or transaxle, combines the electric motor, differential, axle and brake into an integrated assembly.

Toyota has invested Rs 4,100 crore through local units Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts to manufacture components for hybrids in India. In an emailed response to ET’s questions, the company did not give details of the parts being exported from India but said the country is “well-positioned to play an emerging role in contributing to the growing global EV market.”