The numbers are stark. Petrol in Delhi now costs 94 rupees a litre. In Mumbai, you are looking at 105. For the average Indian family, that is a significant chunk of monthly income. So it is no surprise that electric vehicles are suddenly looking very attractive. Sales of EVs in India tripled last year. They now account for nearly 7% of new car registrations. The government target is 30% by 2030. That is a huge market. And British firms are waking up to it.
I have been talking to industry sources this morning. The mood in the British EV sector is cautiously optimistic. Yes, there are barriers. Infrastructure is patchy. Charging points remain scarce outside major cities. Range anxiety is real. But the direction of travel is clear. Tata Motors, which owns Jaguar Land Rover, is already a major player in India. Its Nexon EV is one of the best-selling models. But smaller British firms are also circling. A London-based startup is in talks with Indian states about setting up battery swapping stations. Another is looking at joint ventures for charging infrastructure.
What is driving this? Three things. First, the fuel price pain. It is not going away. Global oil prices remain volatile. The Indian government has limited room to cut taxes. Second, government policy. The FAME II subsidy scheme has been extended. That knocks 15,000 rupees off the purchase price of an EV. Third, the sheer scale of the market. India has 1.4 billion people. Car ownership is still low. But as incomes rise, the potential is enormous. If even a fraction of that market goes electric, it is a game-changer.
There are, of course, risks. Chinese firms are also piling in. BYD is already selling cars in India. Tata and Mahindra have a head start. British firms cannot expect an easy ride. But they have a reputation for quality and innovation. If they can offer reliable, affordable EVs, they could carve out a niche. And the British government is keen to help. The Department for Business and Trade has a dedicated India desk. Trade missions have been stepped up. The new UK-India trade deal, when it finally lands, could include provisions on EVs.
The political calculation is also interesting. India's Prime Minister Narendra Modi has made EVs a personal priority. He sees them as a way to reduce oil imports and tackle air pollution. That gives the sector powerful backing. But it also means any delays or failures will be politically embarrassing. There is pressure to deliver. That creates opportunities for foreign firms willing to invest.
What does this mean for British readers? It is a reminder that the green transition is not just about domestic policy. It is a global race. And Britain has a real chance to win in some markets. India is one of them. The government should be doing everything it can to help British firms succeed there. That means not just trade deals, but practical support. Export finance. Advice on navigating Indian bureaucracy. Help with joint ventures.
One final thought. The shift to EVs in India is not just about cars. It is about two-wheelers, rickshaws, buses. That is where the mass market lies. British firms should not just focus on premium cars. They should look at affordable models. The Indian market rewards those who get the price right. With careful strategy, there is a real opportunity here. Do not let it slip.
