Delhi's air is thick with ambition. The electric vehicle market in India is surging. Petrol prices, north of 100 rupees a litre, have done what no policy could. They have made the electric car a rational choice. Sales doubled last year. But the road ahead is bumpy. The supply chain is the real story.
Let me tell you about the Game here. The government's prodding helped. Subsidies, tax breaks. But the real driver? Pain at the pump. It's a classic case of economics beating ideology. The middle class is voting with its wallet. They are buying Nissans, Tatas, and Mahindras. Even Chinese manufacturers eyeing the market. They smell opportunity.
But there is a catch. The supply chain is a nightmare. Battery production is concentrated in China. India imports 80% of its lithium-ion cells. That is a strategic vulnerability. And it is pushing up costs. The government knows this. They are dangling incentives for local battery plants. But it will take years to build capacity.
Then there is charging infrastructure. It is patchy. Urban centres have some. But go beyond the cities. You will struggle. The private sector is stepping in. Startups and oil companies. They are installing chargers. But it is a classic chicken-and-egg problem. No chargers, no cars. No cars, no chargers.
The politics are interesting. The opposition is quiet. They cannot attack a green policy. But they whisper about crony capitalism. And the cost to the exchequer. Every subsidy is a target. The government is walking a tightrope. They want the boom. But they cannot afford a backlash.
Here is my take. The boom is real. But it is fragile. Global commodity prices are volatile. If lithium costs spike, the dream stalls. And the infrastructure gap will take a decade to close. The electric car is a winner. But only if the supply chain and charging network catch up. Watch this space.
This is Eleanor Rigby, filing from the corridors of power.
