Tuesday | Mar 18 2025 | 10:55:46 AM
As the global transition to sustainable mobility accelerates, India finds itself at a pivotal moment where its policies and strategic decisions can shape the future of clean transportation. With a growing electric vehicle (EV) ecosystem and increasing interest in hydrogen-based technologies, the country has the potential to establish itself as a global leader in green mobility. This article explores a pragmatic roadmap that integrates trade policy, technological advancement, and industrial collaboration to optimise India’s role in the EV and hydrogen-powered vehicle sectors.
Leveraging EV Exports and Strategic Trade Agreements
The recent move by the Indian government to allow fully imported Tesla EVs into the domestic market presents a strategic opportunity. By reciprocating with a zero-duty trade arrangement, India can negotiate tariff-free access for its small and medium-sized EVs in the U.S. market. Given the rising demand for affordable EVs in the U.S., Indian manufacturers could increase their price margins by approximately $5,000 per vehicle while remaining cost-competitive. This would not only strengthen India’s EV manufacturing sector but also provide a high-revenue export avenue. Below is a table listing the prices of electric vehicles (EVs) in both the US and Indian markets.
To leverage this opportunity, India’s EV industry must ensure compatibility with U.S. charging infrastructure while also inviting Tesla to integrate with Indian charging networks. Charging standards need to be unified globally in order to allow seamless integration of Indian EVs into foreign markets.
Optimising Domestic EV Strategy
While encouraging Tesla’s entry into India, the focus should remain on local value addition. Instead of asking Tesla to manufacture standard EVs domestically, the government should encourage them to produce heavy commercial electric vehicles, such as trucks, locomotives, and buses. These segments require advanced R&D and significant investments, making them ideal candidates for technology transfer and domestic production. We should consider asking Tesla to invest in our lithium mines and potentially a lithium refinery, with the e-CBDC provided by India for this project.
Additionally, joint ventures (JVs) with Tesla in the small and medium-sized EV segment can help Indian manufacturers gain technological expertise and enhance production capabilities. This collaboration will also create employment opportunities and contribute to India’s goal of becoming a global EV hub.
Hydrogen and Water-Powered Vehicles: The Long-Term Vision
While EVs serve as the immediate solution for green mobility, India must invest in alternative technologies to secure its long-term energy and transportation needs. Hydrogen fuel cell technology, particularly for commercial and heavy-duty vehicles, presents an opportunity for energy-efficient and low-emission transport. The Green Hydrogen Mission has already set the foundation for such developments, but more targeted R&D is needed.
One of the most ambitious proposals is to develop water-powered vehicles, which could revolutionise clean transportation. India should encourage Toyota and Tesla to collaborate on this technology, as they have already developed prototype water-powered engines. India should position its defense and research institutions, such as DRDO, at the forefront of this innovation. Given the complexity of developing water-powered engines, unrestricted funding for R&D should be a priority. Establishing manufacturing ecosystems for such vehicles will ensure that India remains at the cutting edge of clean mobility.
Exploring Catalysed Fusion Technology
As India looks toward the future of sustainable energy, exploring emerging breakthroughs such as ‘catalysed fusion technology’ can provide a transformative impact on green mobility. Companies like ENG8 Energy are pioneering Energicell technology, which claims to harness energy through a novel approach to nuclear fusion, offering a compact, low-radiation, and highly efficient power source. If successfully commercialised, such technologies could redefine how energy is stored and utilised in transportation, potentially surpassing even hydrogen in efficiency and scalability. While the technology is still under development, India should invest in research collaborations with institutions and private enterprises working in this domain to explore its viability for automotive applications. Incorporating catalysed fusion into India's energy strategy can serve as a game-changing alternative, ensuring long-term sustainability in the transportation sector.
Conclusion
India has the potential to transform its automotive sector by strategically balancing EV expansion and hydrogen innovation. In the short term, EV exports and Tesla partnerships can strengthen India's global footprint. In the long term, hydrogen and water-powered vehicle technologies can redefine green mobility. A structured and phased approach—backed by trade negotiations, industrial collaborations, and infrastructure investments—can position India as a global leader in clean and sustainable transportation.
Small and medium-sized electric vehicles (EVs) available globally, along with their prices in U.S. dollars (USD) and Indian Rupees (INR), availability in the U.S. and Indian markets, and other relevant details:
Model | Country of Origin | Segment | Price (USD) | Price (INR) | Available in USA | Available in India | Additional Information | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Tata Tiago EV | India | Hatchback | 9,700 | 7,99,000 | No | Yes | An affordable compact EV suitable for urban commuting. | ||||
Tata Nexon EV | India | Compact SUV | 15,000 | 1,249,000 | No | Yes | A popular compact SUV EV with a good balance of range and features. | ||||
MG Comet EV | China | Micro Car | 7,300 | 6,00,000 | No | Yes | A compact and affordable EV ideal for city driving. | ||||
Renault 5 | France | Supermini | 22,995 | 19,12,000 | No | No | A stylish and practical supermini EV expected to launch in 2025. | ||||
Citroën e-C3 | France | Supermini | 21,990 | 18,30,000 | No | No | An upcoming affordable EV with a 199-mile range and comfortable ride, set for 2025 release. | ||||
Kia EV2 | South Korea | Small Family Car | ~31,000 | ~25,80,000 | Yes | No | An affordable EV with a 250-mile range, expected to be available on finance plans. | ||||
Kia EV4 | South Korea | Compact SUV | ~45,000 | ~37,40,000 | Yes | No | Offers up to a 367-mile range, combining practicality with modern features. | ||||
Chevrolet Equinox EV | USA | Compact SUV | 34,995 | 29,10,000 | Yes | No | Provides a 319-mile range with notable driver-assist features. | ||||
Hyundai Ioniq 6 | South Korea | Sedan | 43,850 | 36,45,000 | Yes | No | Boasts a 342-mile range and rapid charging capabilities. | ||||
Tesla Model 3 | USA | Sedan | 42,490 | 35,30,000 | Yes | No | Offers a 363-mile range with Tesla's advanced features. | ||||
Tesla Model Y | USA | Compact SUV | 44,990 | 37,40,000 | Yes | No | Combines practicality with a 320-mile range and Tesla's technology suite. | ||||
MG ZS EV | China | Compact SUV | 25,000 | 20,80,000 | No | Yes | A compact SUV EV offering a balance of affordability and features. | ||||
Mahindra XUV400 EV | India | Compact SUV | 18,000 | 15,00,000 | No | Yes | An Indian-made compact SUV EV with competitive pricing. | ||||
BYD Dolphin | China | Hatchback | 15,000 | 12,50,000 | No | No | An affordable hatchback EV with modern features, expected to launch in various markets. | ||||
Dacia Spring | Romania | Mini SUV | 14,995 | 12,50,000 | No | No | The most affordable EV in its segment, suitable for short urban trips. | ||||
Note: Prices in INR are approximate, based on an exchange rate of 1 USD = 83 INR. Availability in the U.S. and Indian markets is subject to change based on manufacturer decisions and regulatory approvals. This information has been updated as on 12.03.2025
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.
