6. FDI and Investment Gap in the EV Sector

The chapter delves into the substantial investments flowing into India's EV sector, with a record-breaking USD 3.6 billion in funding in FY23. Major players like Tata Motors, Ashok Leyland, and global giants such as Hyundai and Mercedes-Benz are setting up manufacturing facilities and investing heavily in battery technology. The chapter also examines the barriers to investment, including the need for clear targets and fiscal incentives for charging infrastructure. Additionally, it discusses the critical gaps in the EV ecosystem, such as the lack of investment in battery production and supply chain development. The chapter concludes by emphasizing the need for policy support to attract further investment and achieve the target of USD 180 billion by 2029-30.