Sources confirm that a quiet revolution is underway in the world’s most populous nation. As petrol prices in India hit record highs, ordinary citizens are turning en masse to electric vehicles. But it is not just domestic manufacturers cashing in. British EV makers are positioning themselves to export into this hungry market, with Whitehall negotiators quietly paving the way for tariff reductions and regulatory alignment.
A senior official in the Department for Business and Trade, who spoke on condition of anonymity, revealed: “There are ongoing discussions to ensure British EVs can compete on price and access. The Indian market is a goldmine for our manufacturers, but only if we move fast.”
Documents seen by this newsroom show that sales of electric two-wheelers in India surged 35 per cent year-on-year in the last quarter. Cars followed a similar trajectory. The cause is simple: petrol now costs more than £1.10 per litre in New Delhi, a burden for a country where the average monthly wage is around £400.
For Britain’s struggling EV sector, this is a lifeline. Jaguar Land Rover, already with a foothold in India, could push its Range Rover Electric into the premium segment. Smaller players like Arrival or LEVC are exploring joint ventures. A leaked memo from the Society of Motor Manufacturers and Traders estimated that exports to India could be worth £2.3 billion annually by 2027.
But there are bodies in the road. India’s protectionist history is notorious. Tariffs on imported cars run as high as 100 per cent. And the Modi government’s Production Linked Incentive scheme heavily favours local assembly. “You want access, you build here,” a Delhi-based trade analyst told me bluntly.
British firms are wary. They have been burned before by broken promises and opaque regulations. Yet the allure of a market that could soon demand 10 million EV units a year is too strong to ignore.
The clock is ticking. If Britain dithers, Chinese and Korean manufacturers will fill the gap. They already have. Chinese firms like BYD and MG have established plants in India. MG, now owned by SAIC, sold over 50,000 EVs there last year.
For James Rothschild, a banker involved in EV financing, the calculus is cold: “The question isn’t if British companies will enter India. It’s whether they will do it fast enough to survive.”
Behind the scenes, the UK India Business Council is pushing for a bilateral EV pact. The next round of free trade talks, scheduled for March, could be the decisive moment.
This is not a story of green idealism. It is about survival in a brutal industry. And the unaccountable power of governments to control which companies live or die.
Follow the money. The trail leads to Delhi. And the bodies are still warm.
